You only pay on gains. So if you buy at $100 and sell (or spend) at $130 value, you’d pay capital gains on that $30.
Discussion
If you buy $100 of bitcoin and spend on something that costs you $80 what happens? Is that a capital loss of $20? No
It all depends on the market price when the transaction takes place. If it’s immediate (marginal change) then you don’t have to worry about paying tax.
In my above example if sold $80 worth of bitcoin whether it’s a loss or gain would depend on the market price.
Right. It’s pretty much just like selling stock or a home. But people should also remember if there are any costs, it is minus any costs such as fees.
Sounds great BUT that only applies if you only own that amount of BTC. If you bought $100 ten years ago and you’ve been holding it and then purchased another $100 and sold it that day your spread isn’t $30 it’s the gain from 10 years. FIFO.