I am an Israeli citizen. I've bought BitCoin (let us agree for the sake of discussion it is a currency) using US dollars.
Let's also assume I never convert the bitcoins to any other currency (but instead use them to purchase goods and services directly). Also, let's assume the monetary value of bitcoin rose when compared to ... well, everything else (USD, ILS, Alpaca Socks).
Do I have any obligation to pay taxes on my "earnings"? I mean, if I never convert bitcoin to USD, then at what point in time do taxes come into play?
Does the fact I'm asking about bitcoin and not about Euro or any other foreign currency matter at all?