As I understand it, currency appreciation is treated as taxable income. However, if the currency you've converted to or any other currency you convert to isn't really appreciating at all and instead it's really just the US dollar significantly depreciating in value due to high inflation, then are you still going to be taxed? (rhetorical question).
If so, then how do you protect your savings against depreciation from inflation without paying taxes on it? So basically when more money is printed, then you either 1) do nothing and have your money become devalued or 2) you can try to shelter it but then you'll pay taxes trying to keep it at the same value no matter what avenue you go down even if its just a conversion to another currency.
It seems like a no win situation unless maybe you just leave it in that other currency and purchase goods and services directly with the other currency. Or is that also taxable too? Is there any way to protect and shelter your savings?