However, masses don't have a compelling need to use Bitcoin and the tax issue adds another reason for them to stay away. The rumor will spread virally, "you need to do a Schedule D to use Bitcoin".
People will slowly realize that the tax issue is NOT a good reason to stay away. All across America, there will be thousands of conversations in the coming years just like this one:
Jim: Does the IRS reaaaaaallllly give a shit whether I do a Schedule D? Surely I can just fudge it, right?
Bob: You could probably fudge it if you only used it like once or twice for small purchases, or if you held it during a period when bitcoin value didn't go up a lot. The IRS really won't give a shit unless you made a significant amount of money on your bitcoin holdings.
Jim: And you're telling me that's a bad thing?
Bob: It sucks. My cousin Billy-Bob earned $50,000 in bitcoin capital gains last year and only got to keep something like $40,000.
Jim: What's so bad about that?
Bob: He like, had to fill out a Schedule D, man.
Jim: So you're saying it's worth it to give up $40,000 so you can avoid filling out a Schedule D?
Bob: Exactly.
Jim: You're mom and dad were first cousins, weren't they? .....