The bitcoin was converted to another cryptocurrency, and then another, and so it went. which is a digital ledger in which transactions made in bitcoin or other cryptocurrencies are recorded chronologically and publicly , All of these transactions were tracked and made public using blockchain. Each conversion is a taxable transaction.
It is easiest to think of cryptocurrency as a commodity, such as gold and platinum.Just like any currency or commodity, the cost of one unit of any cryptocurrency changes by the second. Let's say an investor buys an ounce of gold and then converts the gold to platinum. That would be a taxable event. Gold has a dollar value and platinum has a dollar value, with the difference being taxable.
For example, let's say a person bought $100,000 worth of bitcoin. His or her basis in the bitcoin would be $100,000. That number of bitcoin can either be converted into other cryptocurrencies or be used to pay for goods and services.
Unlike money issued by governments, cryptocurrency has no Federal Reserve, no gold backing, no banks, and no physical notes. Thus, it is necessary to track and regulate it.So that, it would be more acceptable around the world very fast if it would be taxable for each country.