The original post: /r/cryptocurrency by /u/howevertheory98968 on 2024-12-10 06:05:00.
I posted this in another thread in another subreddit.
The problem with this is every time you spend, it's taxable. That's annoying. This is the red flag with crypto.
People are not going to keep track of 100 purchases for food with anything so they can spend all day doing taxes because they bought lunch with Litecoin.
For all the greatness of it, having to keep track of everything you buy for tax season is a deal breaker. For likely everyone. I'm sure there will be an app that does this for you, but still. What a pain.
Imagine EVERYTHING YOU BUY has to be shared at tax time. Yeah right. Those people who buy lunch every day, that's like 200 purchases a year at least. Plus groceries, rent, books, whatever. No way are people going to keep track of that. It's literally not going to happen.
It has nothing to do with them being too unsteady to be a currency (hey guys my currency is up 80% this year) even though that's another reason it won't be a currency. It's simply because of taxes.
I haven't even sold any, ever, because I do not want to do the taxes, and because I am unsure how to even find my cost basis for something I bought on Binance US 5 years ago. The app sure doesn't tell me.
I cannot even imagine using it every day and declaring that for taxes.
Oh, and it's slow. Except Litecoin and I'm sure some new ones. Bitcoin is slow. Ethereum is expensive. Nope. Nope. Nope. Can I have my sandwich soon? As soon as your BTC transfers. In 15 minutes.
Disclaimer: I'm bullish on crypto in general. But this is entirely distinct from it being a form of money.
Disclaimer 2: I'm an entrepreneur who makes his entire living online, and I really want to accept crypto, but I cannot think of a reason that it would be better than money. That has literally no reason to be used instead of money other than trendy factor and "promoting adoption." More like annoying record keeping.
Got paid $4000 in BTC and then BTC fell 50%? Now you owe taxes on a $4000 but you only have $2000 to pay it with.
The solution is to cash out immediately. So then why even get paid in crypto?
There's no ease of use.