Also with the crypto->crypto trades there are many exchanges that don't track anything. There are some that are completely decentralized and work based on using smart contracts. Who knows how the IRS is going to tackle that issue. It is very small segment of the overall market though.
It's completely useless basically, unless you are paying online for something. For day-to-day purchases, it seems most people are just buying gift cards with their BTC. That seems to get the job done very effectively.
Also keep in mind, there are other cryptos that exist where the transaction fee is basically free and the transaction confirms in under 2 seconds. Nano is one that comes to mind.
Bitcoin is definitely falling into the "e-gold" category if you ask me.
Exactly. It falls in line with similar to "don't talk to the police". Just keep quiet. This applies to everything when dealing with any government agency. The government is not your friend.