I’ve been learning more about Bitcoin and really like the idea of it being sound money. But one thing keeps bugging me, and I’d love to hear the community’s perspective.
If I use Bitcoin to buy something — say a coffee — that’s considered a disposition of an asset by the CRA here in Canada. That would trigger a capital gains tax, depending on what I originally paid for that BTC. That’s not how spending actual money works — I don’t pay capital gains when I use fiat at a store.
So here’s my question: If Bitcoin is truly money, shouldn’t it be treated like money from a tax perspective too? The way things are now, it feels like the system is pushing people not to use it in daily life.
Is this just a growing pain until tax laws catch up? Or is this part of the trade-off we accept in exchange for having money the state can’t manipulate?
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