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'm definitely not an expert, but I’ve been wondering how this currently works when it comes to coupons, points, and similar systems that aren’t legal tender. For example, a friend of mine used to receive Sodexo coupons from his employer, but he didn’t use them himself. Instead, he sold them to me at 70% of their face value. So, I was essentially buying a €100 coupon for €70 and then using it to pay €100 at Aldi or at a restaurant.
As far as I understand, the restaurant was treating the coupon at face value, converting it 1:1 into euros. Now, compare that to Bitcoin: if I buy Bitcoin at €70,000 and then spend it as if it were worth €100,000, with the restaurant instantly converting it to fiat, it’s quite similar.
No one really cares where the coupon—or in this case, the Bitcoin—came from. They just accept it at face value. And unless I voluntarily declare it in my tax return, there’s basically no way to track it. And in most of Europe, doing a tax return isn’t mandatory.... And if they make in mandatory / cumbersome to use - most people just won't use it,
Under the tax law of almost all democracies Bitcoin has been arbitrarily defined as a commodity- one that is KYCed, tracked and traced and citizens are allowed to use as a speculative commodity. If however citizens choose to use Bitcojn as a MoE almost all jurisdictions require that to comply with their tax laws the person spending Bitcoin account for the difference in its value from the time it was acquired to when it is disposed of in the purchase transaction. This makes it extremely cumbersome and inconvenient for citizens of most countries to use Bitcoin as a MoE- although it is not outright banned, it does infer complex transactions recording and calculations upon relative value and ultimately the payment of tax on any capital gains enjoyed by the citizen. This is the law and although in practice it is not always enforced, most people in most countries where Bitcoin can be legally used as a MoE these highly inconvenient tax obligations do exist. In most autocracies, Like Thailand, Russia, China, Turkey etc= MoE use of Bitcoin is outright banned. Bitcoin when used as a MoE is a potential threat to the fiat operators hegemony over MoE and they do not want that so have created these outright bans or in more 'liberal democracies' sly but comprehensive obstruction. Most Bitcoiners struggle to even understand the nature and scale of the problem and the extent to which their governments have slyly obstructed use of the P2P payments protocol.
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