I generally agree with you, but we are talking about buying and selling BTC on decentralized exchanges and not declaring them to the tax authorities? I guess that would be the logical thing to do.

The problem I see with that is how you justify that you have large amounts of money tomorrow.

If you have $2K in Bitcoin, you can spend it with gift cards or go to a Bitcoin ATM that doesn't require ID and exchange it for cash.

But if you bought a certain amount on a decentralized exchange in the previous cycle, didn't declare it and today you have $200K you have a problem. Even if you want to declare it now, in many jurisdictions you have already committed a tax crime, so you are in big trouble if you declare it. If you don't declare it, you will have to spend the money $200 at a time or exchange it for fiat at ATMs little by little, but you won't be able to buy a house or a car with it.