The crypto community is incredibly financially literate and savvy. Despite everyone calling for crypto adoption and more merchants to accept crypto as payment, most people want to accumulate more crypto, not spend it. Holders think it will be worth more in the future, so why spend it now?
Spending Bitcoin (BTC) at Starbucks (NASDAQ:SBUX) for a cup of coffee is a huge pain in the side. Although the transaction itself might be relatively painless with the help of a mobile app, the accounting and tax implications can be frightening if you’re transacting on a regular basis. This is because the United States Internal Revenue Service classifies cryptocurrency as property, meaning that if it appreciates, you owe capital gains on the appreciated amount at the time you spend it. No one wants to figure out their tax liability on a $2 cup of coffee.
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