The US tax code is strangling crypto adoption
For anyone unaware, the current US tax law requires you to report every use of crypto as a sale for equivalent USD and pay capital gains taxes on any increase in value since the time you acquired the crypto.
With people such as Jarome Powell, the ESMA, Christine Lagarde, etc all claiming bitcoin is only a speculative investment and not a currency i'm moved to wonder what could it be like if crypto was treated as a currency for tax purposes.
if you buy $10,000 worth of Euros as a speculative investment you are required to pay capital gains taxes in the same vein as any investment, however if you buy Euros to use for personal expenditure it is no longer treated as an investment and you are free to spend them without keeping track of their gains and losses relative to the dollar.
In order for crypto to be used easily as a currency people have to be able to spend it without keeping track of every single purchase. Ever wonder why your feeless instant payment cryptos aren't taking off? It's because no one is using crypto to buy things, and until that changes the value proposition of tons of cryptos goes right out the window. Why even bother innovating new cryptos when they are fundamentally blocked from being easily used?
We need a movement. We need everyone who learns about crypto to know that the tax laws are what's hindering its adoption. We need people to push for a change. No one should ever be able to say crypto cant be a real currency without immediately being asked "well you know why people don't use it to buy things, right?"
This is the most important change we can make to increase the proliferation and adoption of cryptocurrency.
submitted by /u/interslicer