Who in their right mind would waste their Bitcoin on taxes or buying random stuff? First of all, I very much get the &quot;argument&quot; that Bitcoin has to be used as a currency for it to function long-term and it's a good thing if it is, etc. Not arguing against that.
But when I keep hearing about this company and that government/state/town &quot;accepting&quot; Bitcoin for payments of random stuff or taxes, I can't help but wonder to myself: Who in their right mind would be wasting their hard-earned Bitcoins like that? Why would they not pay taxes/stuff with fiat and hold on to their BTC?
Of course, excluding the remote possibility that they are all doing it &quot;for the greater good&quot;, which sounds extremely unlikely.
The only explanation I can possibly think of is that maybe they expect it to go up in value, so if they buy some Bitcoin now, even if at a premium, and then wait for some time, and then use it to pay for taxes/stuff later, they would still waste less money even including the capital gains taxes that they have to pay to pay for the taxes... in fiat... because they used their Bitcoin to pay for... taxes... ugh... my head starts spinning just trying to make sense of that.
Who in their right mind would waste their Bitcoin on taxes or buying random stuff?

Can't comment on taxes because it's different in every country and depends on individual how they manage it.
Who would use their bitcoin for payments?

Holds only bitcoin and no fiat
Not interested to see few things in bank/card statement
Merchant accepts only bitcoin or other cryptocurrencies
Want to avoid payments being censored by governments

Also using bitcoin for payments allows you to buy more things over a long period of time especially bull markets:
https://link.medium.com/p8oVGwGWAgb
Normally people manage fiat in bank account, credit card, long term savings, investments etc. If someone wants to buy ice cream, most probably they will use cash/card and not withdraw money invested in markets or long term savings. Similarly, bitcoin can be managed in cold storage (long term savings), hot wallet on-chain (for payments, trading, etc.) and LN wallet(for quick payments with low fees). Don't need to use cold storage for payments.