The main problem I see is that the primary incentive is usually "do it to support the network, bro." People are doing what economically makes sense. It doesn't make sense for me to get paid in fiat, have mostly fiat bills, and spend a fee to use Bitcoin, spend a fee to replace the Bitcoin, and then have to live the nightmare of tracking all of the buys and sells for my taxes.

There are so many differences between jurisdictions that there is no single answer to more people spending Bitcoin. The incentive where I live is to spend fiat and save my extra in Bitcoin. I usually have a disincentive to spend and replace. The only time that hasn't been true is when there is a 10% discount on some larger purchase I'm making. Even then, I usually don't want to deal with the tax tracking of it.

This is a multi-faceted issue, but I do agree that more merchants would not solve my issues. I actually don't even need merchant adoption as much as I once did (with all the conversion options). What I need is simpler tax tracking or no taxes at all on Bitcoin for the full economic incentive to bother with spending and replacing.

I donate a lot more Bitcoin than I spend because the tax situation isn't complicated for me when I donate.

I don't think the network is any worse off doing what I do. I'm still pulling value out of the fiat world and putting it into Bitcoin on a regular basis. I'm just not micro transacting myself to death when my reality simply isn't set up for it.

If Bitcoin was legally a currency without taxation, I'd be living completely in it today, even if I lost a percentage for doing so. I would do that on principle. But the amount of work I'd need to do right now is beyond what I am willing to do. There may be ways to make it easier, but not easy enough.

The UX and laws just aren't there for me yet. And this isn't really surprising. The Fiat rails have almost a century on Bitcoin.

We are going the right direction. I'm on more of a Bitcoin standard in my own life than I've ever been, even with how I use it right now.

Like nostr:nprofile1qqsw3znfr6vdnxrujezjrhlkqqjlvpcqx79ys7gcph9mkjjsy7zsgygpr9mhxue69uhhqatjv9mxjerp9ehx7um5wghxcctwvsq3samnwvaz7tmjv4kxz7fwdehhxarjd93kztnrdaksz9thwden5te0wfjkccte9ekk7um5wgh8qatz7tvu4p said, we're gonna make it.

nostr:nevent1qqsv9arslqzc35ll8t3lwghcnga0ru6kqrcv00e36fl3jmkp3zhe30spz4mhxue69uhhyetvv9ujuerpd46hxtnfduhsygpul2qkhdyf97ntaxf6cu4flndmpzdaagx9myq3l5sy6929ghazmypsgqqqqqqs2lwvfs 

 Thanks, Matt.
The tax argument is indeed strong.  Accounting is a heavy burden, especially in certain countries.
Probably taxes is another area where the collaboration between wallets and bitcoin accounting services might be useful. (e.g. Koinly, Taxbit, ...)