Reread the thread: They force us by expecting us to pay capital gains taxes on every media of exchange thats not government currency.
Why is that a problem? If bitcoin value increases compared to local fiat it's good for the merchant. They will pay capital gains which are ONLY a fraction of such gain. If they lose value or stay the same, no problem.
That guy seems to be impossible to explain this. His argument is now reduced to the assertion that Bitcoin will fail because of paperwork businesses would have to fill out for exchange rate gains. I hope somebody would come here and explain it in detail whether it actually requires that much work and how often
Personally, I don't believe him but have no experience in this field to refute with competence...
Is it so difficult to understand. You will need to record the USD/BTC rate on every transaction. Here the problem starts, which exchange rate are you using ? The Goxed or the Stamped one ? Don´t forget the timestamp of the transaction needs to be matched with the price at the point of exchange of goods. Just imagine you would do 100 transactions as a merchant a day....
After a week you then cash out 50%. You will need to calculate the average rate USD rate you received the coins, to determine the profit you have made by accepting them.
A week later you will need to cash out another 10%. You have had another 100 transactions, meaning your average price has changed again....
I would not want to do this unless this is automated....
This can be very messy. And if you do one mistake the taxman will surely come around and will have a look at all transactions you have done...
Finally someone understands. Exactly! Its enormously messy and increases cost considerably. Taxing the medium of exchange is one of the main reasons we dont have competition in the medium of exchange market. If everyone was free to use what ever medium of exchange he wanted we would have already switched to more desirable alternatives like digital gold. One of the main reasons we use the dollar is because it is the only medium of exchange that is not taxed.