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How will BTC be a traceable and taxable income? If I pay a merchant with cash, there is of course a loop hole (here in the UK at least) that the merchant can not declare the cash and have tax free profit. Will this be the same with bitcoin? Will tax on bitcoin have to be paid in bitcoin? Will there be VAT on bitcoin purchases? All these questions, that, although BTC shows potential and is migrating more and more into every day lives, will it cause another "credit bubble" of sorts and end up causing the next inflationary crash cycle? If BTC is a unified currency and I can trade in China paying for my items in BTC, this will also remove the need for currency exchanging (across some of the minors anyway) and would then effect the economy as a whole. How would interest rates work if we are unified in paying with BTC? Interesting stages are to come with this and it could be very great or be a massive downfall in global economy. It could make redundant all of the Central Banks's efforts of QE... Just a thought. Can anyone please clear this to me?