I also started my first post above by saying  ---- Assuming I am playing nice


I described fully taxable transactions that went on my 1040.  If I need cash I don't mind paying a 1% fee to turn full price BTC into cash in my bank in 3 hours or less.  I find that reasonable for the convenience.  I hold BTC hardware wallets that are traceable to me by transaction history and I don't really mind using them as needed going along in life.  I don't leave BTC in my exchange (no keys not your coins).  All above board.  However; I also hold BTC hardware wallets that don't trace back to me and are sitting in the blockchain for years.  Those were trace "scrubbed" long ago and they could go in any direction in the future.