I'm starting a small local business and as we speak, integrating Bitcoin into every level of the plan. It is becoming clearer all the time how it's going to work in a fiat world
As a savings tool, BTC in, hodl it.
As currency,- BTC in, convert to euros and spend it on justifiable business exoenses, no cap gain tax event, just account for it as income.
As it stands, to live with a true bitcoin standard,, at some point it is kind of leaving it to someone in the chain to cash out into fiat. Unless an accountan ist able to fill the big gap in my knowledge, this is the process:
Capital gains tax issue especially when number is going up. One solution to keep the business itrading all in BTC, is to line up suppliers in advsnce who will accept Bitcoin. When I receive BTC from a sale, I send it straight to a feed supplier for example, as a payment against an order. I always need feed, or the chickens will, I mean. No profits made. So I'm alright, for cap gains
But all that does is pass the buck, unless the supplier has ways to spend their bitcoin too.
I know in a circular economy bitcoin is brilliant as currency, but I'm not sure how to sell the ides to others without having to admit that without cashing out into fiat and spending it, bitcoin is more a matter of philosophy IE we are proving we believe in it even though it is costing either hard cash, excuse the terminology, or tve ridicule of having to rely on fiat to make it work for daily business.
So it makes no hard business sense day to day.. but magic as a treaury asset
Obviously if the tax office were to drop the Cap Gain penalty for day to day use that's the game changer
To balance it out. I guess, you could just make losses, in a bear market,? holding back efore you spend BTC.
Anyway, if relying on fiat to make it work day to day is the only option, so be it. Greater minds than mine no doubt see the nuts and bolts that need to be tweaked to get to an easier usage of BTC for everything.
Am I missing anything obvious?
#btc #circular economy
/ Huevosdelolivar
npub10d…39zws
2024-08-10 12:00:01
in reply to nevent1q…0aaj
Author Public Key
npub10dpmrjay77xcu6z2sxsv7h7dfl6puzcxgyd6ssxkwh9th8sdgk3sj39zwsPublished at
2024-08-10 12:00:01Event JSON
{
"id": "844b110003f767faa3a5cddef8e550edbe0d494ae64b98150c0b50eb3ffceffb",
"pubkey": "7b43b1cba4f78d8e684a81a0cf5fcd4ff41e0b06411ba840d675cabb9e0d45a3",
"created_at": 1723284001,
"kind": 1,
"tags": [
[
"e",
"799c680cfcecc700db09ae18bbba6007a2d8c3aa4fedc0435632c031be621082",
"",
"root"
],
[
"p",
"2f5de0003db84ecd5449128350c66c7fb63e9d02b250d84af84f463e2f9bcef1"
],
[
"t",
"btc"
],
[
"t",
"circular"
]
],
"content": "I'm starting a small local business and as we speak, integrating Bitcoin into every level of the plan. It is becoming clearer all the time how it's going to work in a fiat world \n\nAs a savings tool, BTC in, hodl it.\n\nAs currency,- BTC in, convert to euros and spend it on justifiable business exoenses, no cap gain tax event, just account for it as income.\n\n As it stands, to live with a true bitcoin standard,, at some point it is kind of leaving it to someone in the chain to cash out into fiat. Unless an accountan ist able to fill the big gap in my knowledge, this is the process:\n\nCapital gains tax issue especially when number is going up. One solution to keep the business itrading all in BTC, is to line up suppliers in advsnce who will accept Bitcoin. When I receive BTC from a sale, I send it straight to a feed supplier for example, as a payment against an order. I always need feed, or the chickens will, I mean. No profits made. So I'm alright, for cap gains \n\nBut all that does is pass the buck, unless the supplier has ways to spend their bitcoin too.\n\n I know in a circular economy bitcoin is brilliant as currency, but I'm not sure how to sell the ides to others without having to admit that without cashing out into fiat and spending it, bitcoin is more a matter of philosophy IE we are proving we believe in it even though it is costing either hard cash, excuse the terminology, or tve ridicule of having to rely on fiat to make it work for daily business.\n\nSo it makes no hard business sense day to day.. but magic as a treaury asset\n\n Obviously if the tax office were to drop the Cap Gain penalty for day to day use that's the game changer \n\nTo balance it out. I guess, you could just make losses, in a bear market,? holding back efore you spend BTC. \n\nAnyway, if relying on fiat to make it work day to day is the only option, so be it. Greater minds than mine no doubt see the nuts and bolts that need to be tweaked to get to an easier usage of BTC for everything. \n\nAm I missing anything obvious? \n#btc #circular economy\n",
"sig": "57032d8e6ad03b1153c4653736b71bd0985efa5602fdee3889037cbd23f6610fd5c3f3fd8238cb6d03749972e5cc0eee3d7af677bea9fef79f6320b81320cca3"
}