Taxes are the reason that Bitcoin will not be used as a currency, at least not in most tax jurisdictions of the western world. The IRS in the US has made it perfectly clear, if you purchase and then spend bitcoin, they will find out and that you owe capital gains taxes. I cannot see Bitcoin being used as a payment system under this tax regime. Am I wrong?
If I’m not wrong, the only other big argument I can see for Bitcoin is as a safeheaven asset like gold. Can Bitcoin be a viable safeheaven asset only? Because here Bitcoin has competition in the form of precious metals and those have a much longer track record, plus.. you know.. they exist physically.
How can we expect more and more users of Bitcoin and a growing demand, if it’s not viable as a payment system due to the correct tax regime?