what I am asking is how the value of tax is determined by bitcoin which we all know so far that the price of bitcoin is always changing in an instant, is tax at a value with the ongoing btc price?
One example is that when you buy Bitcoin at $3000 and sell at $5000, you pay tax over $2000 in profits. If you have done multiple trades throughout the year, you add the value of all the profits you made and pay tax based on that. The shitty part is that in some countries they punish you extra for reporting higher profits. Rats they are.
In my case I also have to pay tax over the value of my entire wealth, and the way it works is that the value is calculated based on the total value on first of January. The higher the price of Bitcoin is on January the first, the more tax I end up paying. In that regard, it comes quite handy that Bitcoin always tends to crash in late December.