We still have to be honest and accurately report our earnings or move to a country that doesn't tax these things.
Well, I am in favor of being honest, but if you spend the money directly without taking to your account, I am not sure, if it would be counted as our earnings. For example, today, someone gives you an Amazon gift card, and you spend that, it's not considered as earnings, right ? I am thinking that way. There is no reasonable taxing in my country - the govt imposed a flat 30% tax without thinking about small investors. So people will always take the benefit of not reporting them as long as the law does not have clauses to outline it specifically.
In Canada, you have to claim the gifts you receive. Not sure everyone does and many fail to even report on the airmiles or other reward programs when claiming rewards.
We also have sales tax where the transactions definitely should include some sort of tax, even when crypto is the currency.
Either way, we are bound by law to accurately report our income and pay taxes on domestic transactions. I suspect the hammer will fall on people when the government gets around to being able to police it but they will have to approve it as legal tender then too.
Now, it is the wild west.
I think, people just do not want to pay tax on everything, unless forced.