According to @cryptotaxgirl, every time Bitcoin is used for a transaction, it triggers a taxable event that requires traders to calculate profit or loss based on the difference between their purchase price and the price at the time of payment. This creates significant challenges for accurate record-keeping, especially for active traders who must track each purchase and sale price to comply with tax regulations. Efficient portfolio tracking tools and detailed transaction logs are essential for minimizing tax liability and avoiding penalties. Traders should be aware that failure to maintain proper records can result in unwanted audits and financial risk according to IRS guidelines (source: @cryptotaxgirl, IRS.gov).