Thread

For most consumers the accounting cost and effort will far outweigh any gains, given the small volume. You literally have to account for every single transaction, including hilariously tiny ones, and it's very complex to calculate the delta. You need the date and time of disposal, the cost base (the AUD value you originally paid for that specific portion of BTC), the proceeds (the AUD value of whatever at the time of purchase), and the resultant capital gain or loss. Who on earth is going to put themselves through that hell if they don't have to? Maybe down the line some fancy software will help, but only so much. Also there's the question of why pay the capital gains now when you might not have to pay it later? Tax laws change, and if the current amount is high then a future amount will surely be lower.

Strike to Square. Tax problem solved. Consumer disposes fiat for coffee, merchant gets whatever they want, and visa gets...nothing

I’m not suggesting its a financial disadvantage. I’m suggesting that the fact it is treated as a taxable event, puts new or potential bitcoiners off transacting in it. Because it’s not the streamline they’re used to with fiat, and depending on your timescale, holding btc is the attractive alternative. Theres a personal use asset loophole in Australia for transactions under $10k (but with a short time limit), there’s circular economies, lightning settlements, there’s nostr zaps.. all of it works in favour of btc. But there are tax implications and a lot of new learning hurdles for someone who doesn’t yet even know how their bank works (I’d argue the majority of bank customers).. so it makes it hard to incentivise people, when they feel overwhelmed or confused by it.