What will happen on BTC if the government will said that all the bitcoin holder have to pay their tax??
Maybe the expansion of BTC community will get low than usual.
I am sure that in some countries they already pay. In most you have to pay only after you sell them for their local currency and that currency lays on banking account that is in that country.
What will happen is that:
a). people will just pay taxes.
b). people will move to other country.
c). people will exchange their Bitcoins fro something else that will not make them pay taxes.