To increase adoption, perhaps taxes can be automated.

Before you scream to the high heavens of Reddit, let me first state that I hate taxes and generally dislike the government.

However lawful tax obligations are a reality, like them or not.

BTC has been declared a commodity by the IRS and as such all transactions of BTC are subject to capital gains tax in the United States. THIS, is an accounting nightmare that is a reall hurtle for adoption, but not an insurmountable one.

While most would argue that BTC, or at least small transactions of BTC, should be exempt from capital gains tax, good luck convincing our money hungry government cartels ????????.

So, what's the option?

I was inspired by a recent post on this sub about POS sales, and that got me thinking.

A POS transaction protocol can be programmed to include capital gains on all transactions and forward a portion of all everyday transactions to the IRS. Yes, this will be a regetable involvement of the government and will destroy privacy. BUT it will aid adoption. If you have any BTC you want to segregate for illicit transactions ... you were probably already taking steps to obtain and keep that BTC from your KYC stash anyway, right?

An automated cap gains tax at POS would eliminate the need to account for potentially hundreds of micro transactions at tax time.

So what's needed?

Basically to calculate taxes you need to know your individual cost basis. This could be inputed when you sigh up for a POS transaction system. Each transaction could then be automatically taxed based on your inputed cost basis and a spot price at the time of the transaction.

Obviously, problems still remain. For instance short term capital gains are likely going to be punishing and capital losses during a long bear market probably won't be creditable after a year or two when the bull comes back.

It would probably b best to have some BTC that is separate from you savings stack that you use strictly for everyday POS transactions. This stash would have a separate "cost basis" than your savings stack, that way you would have to account for all BTC together when you do your taxes.

Again, I'm not a fan of taxes, and I'm sure there are problems I haven't even considered. But, I bet it can be done.