Bitcoin has limited supply and most importantly its decentralized unlike Fiat that has unlimited supply and government has full control over it. Bitcoin in general doesn’t work like you are suggesting. The government is just controlling the people to treat as fiat but Bitcoin itself doesn’t have tax and network fee is just a transaction fee.

Bitcoin is far better than Fiat because it doesn’t have inflation due to its limited supply.

Bitcoin is digital money firstly before even considering it as fiat which expressly sums up to legal tender of a country. What distinguishes BTC from a countries fiat is that it is a universal currency. Irrespective of the country one is in or region they are from, BTC is BTC and the network fee is same as long as an exchange or P2P system is used to process payments and trade.
It is clear also that any financial processor one uses to facilitate any transactions nowadays is charged or taxed, be it for fiat or BTC a fee is always paid to complete the transaction.

The control one also has over their BTC is not same as compared to fiat wherein every transaction details and reference is just there for anyone to see. The anonymity is the catch, except for these days where regulators are changing the decentralized game to a more centralized one inorder to have better control over it.

Since we are earning from the crypto community,we can pay some tax to our country.Because our little tax may help the government to create a better scheme for our people.If your country is more poor,you need to contribute some money to the country development.The traders are maximum income tax payers and they need to pay 1% TDS on every trading.The one percent may not seems high,but when the trader made the trade.He also need to pay the exchange fee on every trade.

I highly agree and Bitcoin is not a fiat currency since it has no backing of any government since it is not issued by the government and is not even backed by the person who created it although has an open market that dictates it value the reason for its volatility.

I believe @OP needs to read this article to know the difference between fiat money and Bitcoin: https://empireflippers.com/bitcoin-and-our-marketplace/

Totally agreed, We should pay tax as by paying tax the condition of one country might improve as there will be more funds in reserves. The transactions fee of exchanges you are talking about are too less I mean I do not even care about them but the transaction fee on BTC blockchain or ETH blockchain are high and due to this reasons many people avoid using both in there shops or business for payment purposes.

And the 1% TDS is really not that much but it do matter when the amount is big. Sometimes ago I read a topic here about India accepted crypto but put huge tax on the users and I think that's also good at least that tax will help people as well as governments in many ways.

There's no such thing as "free lunch". You'd need to pay a fee for your transaction to go through the Blockchain. Otherwise, the network would be extremely-vulnerable against spam attacks. It would result in higher network congestion to a point where BTC will become unusable. Fees are just a way to protect the network from attackers while supporting the miners. I wouldn't call them an "enforced tax" mechanism, but rather a contribution to the network itself. Everyone benefits in the process. Miners will profit, while you get to enjoy financial freedom.

What's disturbing is how every transaction is visible on the public BTC blockchain. You don't want prying eyes knowing your utmost sensitive info. Fortunately, we have both custodial and non-custodial mixers to use Bitcoin in a private and anonymous way. If that's not enough, you could simply convert BTC to XMR for complete peace of mind. Who knows if BTC becomes a part of our daily life in the future? Just my thoughts

A fiat currency is a currency with no asset base behind it. Bitcoin is a crypto medium of echange with a vitual asset backing that has real value. In fact it is the only crypto that has a hard asset value to back it up. I keep tryting to think of a way to create an alternative, but so far i haven't mamaged. Any alternative is likely to be hit by a 51% attack before it got off the ground.

OP, you need to take your time to study and DYOR so that you will get the proper understanding between fiat and bitcion,transaction fee and tax. When using bitcoin for transaction, there are miners who help add this transaction to the blockchain which is the fee that you pay for them to help you make your transaction successful. Who will render a service for free,then how will be feed. I don't want what job that you are doing,do you tell that at the end of the week or month that you don't need the pay,that you did it voluntarily? I doubt,this is the same with the tx fee. @Charles-Tim has stated the difference between fiat and bitcion, so check it out for yourself.

I don't think bitcoiners are scared of paying taxes, we're law abiding citizen therefore we're required to pay our taxes and we'll do just that. Bitcoin is very different from fiats and one of the ways is how the network is been handled. Fiats is centralized and our transaction are been highly monitored by the government. When using fiat we didn't have the freedom to do with our money want we want as there are limits to transaction done daily from our accounts.

But when you're operating using bitcoin and not keeping your coin on a centralized exchange or wallet, you're free to access your money whenever you want and spent them as it pleases you without having to verify your identity like the banks request to monitor you.

When will you realize that you understand nothing about Bitcoin and instead, sit your ass down and learn first? you are a newbie and your point is so invalid, you can see tons of replies proving that you are completely wrong.

Forget everything that you think you know about Bitcoin, you know nothing.

Fiat is different from Bitcoin, and transaction fee is different from tax.

There is no Tax on holding your Bitcoin in your wallet, that's why it's advisable not to keep your Bitcoin on centralized platforms that could rip you off, either through higher transaction fees or using authority since you are not in control of your Bitcoin anymore.

Transaction fee is necessary, it's what adopters pay to miners to get your transaction in the blockchain, and it also keeps it safe.

Why the Bitcoin transaction fee is important

1. Process transactions.
2. For Miners to maintain the Network.
3. Keep the Network flowing.
4. Keeps the Network Safe.