I had been pointing out this problem over the past weeks and months (remember upthread I pointed out that automating this computation was not realistic):
http://www.theatlantic.com/technology/archive/2014/03/why-bitcoin-can-no-longer-work-as-a-virtual-currency-in-1-paragraph/359648/
But that article points out another problem with the fact that Bitcoin is not untaxable as legal tender:
The reason this destroys fungibility is that people will need to think about tax timing and implications when spending money, i.e. they have to bind their money to their total tax planning.
That is the antithesis of money, because you reduce the degrees-of-freedom and remember the entire point of money was to eliminate the gridlock of barter and make it easy to transact without the requirement to find matching scenarios.
This is major! This just destroyed Bitcoin. If you don't understand this, you really better take some deep thought time.
Actually I think I may have pointed this out last year in the thread by deisik in the Economics forum.
You are coming to my bandwagon whether you like it or not. Because I saw these problems early and began formulating the solutions many months ago. So am quite far along already.
Those who were friendly to me are now being rewarded and handed the resources to be leaders, because they showed that they were astute and possess a group-think filter so as to think out-of-the-box. And they now know something you don't.
http://www.theatlantic.com/technology/archive/2014/03/why-bitcoin-can-no-longer-work-as-a-virtual-currency-in-1-paragraph/359648/
Quote
If I have to figure out which particular Bitcoin in my wallet I want to spend and what the tax treatment will be, Bitcoin just doesn't work as a commercial medium of exchange.
But that article points out another problem with the fact that Bitcoin is not untaxable as legal tender:
Quote
The price at which a particular Bitcoin was acquired (and this is traceable) determines the capital gains on that particular Bitcoin when spent. If I spend Bitcoin A, which I bought at $10, but is now worth $400, Ive got a very different tax treatment than if I spend Bitcoin B, which I bought at $390. [
] This means Bitcoins are not fungible, and that makes it unworkable as a currency.
The reason this destroys fungibility is that people will need to think about tax timing and implications when spending money, i.e. they have to bind their money to their total tax planning.
That is the antithesis of money, because you reduce the degrees-of-freedom and remember the entire point of money was to eliminate the gridlock of barter and make it easy to transact without the requirement to find matching scenarios.
This is major! This just destroyed Bitcoin. If you don't understand this, you really better take some deep thought time.
Actually I think I may have pointed this out last year in the thread by deisik in the Economics forum.
You are coming to my bandwagon whether you like it or not. Because I saw these problems early and began formulating the solutions many months ago. So am quite far along already.
Those who were friendly to me are now being rewarded and handed the resources to be leaders, because they showed that they were astute and possess a group-think filter so as to think out-of-the-box. And they now know something you don't.