From a market perspective, and a tax perspective, buying things with Bitcoin is EXACTLY THE SAME as selling your Bitcoin.

... Because the companies that offer "Pay with Bitcoin" typically don't ever see your Bitcoin. It goes through a third-party partner who sells your bitcoin, takes the cash, and sends it to the vendor in their preferred currency.

Also, from the perspective of the IRS (if you're in the U.S.).. buying things with Bitcoin has the same tax implications as selling your Bitcoin.

In other words, the current model of "buy with Bitcoin" is nothing more than adding a middleman who sells your Bitcoin on your behalf to the vendor can receive fiat.

I know that a lot of you think you're feeding the ecosystem when you buy with Bitcoin. You're doing exactly the opposite.