Except there are numerous costs involved in Bitcoin as a payment system. For example:
- The transaction fees themselves: very small by comparison with several other systems, but these will eventually be higher.
- Costs to convert to/from other currencies: these are currently often higher than credit card fees.
- Tax reporting costs: in the US, at least, to the best of my understanding, almost every payment you make with Bitcoin needs to be reported as a transaction with capital gains/loss. Every meal you have, every dollar worth of bitcoins you spend online, needs to be accounted for with the cost basis of the bitcoins you purchased, the dollar/bitcoin exchange rate at the time you made the payment, and so on. If you use bitcoin to replace all your payments, you could easily end up preparing a tax return several hundred pages long and involving huge preparation costs in terms of either accounting bills or time.
