The Cato Institute, a libertarian think tank, argues that U.S. tax regulations make using Bitcoin for everyday purchases impractical. Each Bitcoin transaction is treated as a taxable asset sale, requiring users to track multiple purchases, calculate gains, and prepare extensive tax filings. Nicholas Anthony, a research fellow at the institute, emphasized that buying something as simple as a cup of coffee with Bitcoin could lead to over 100 pages of tax documentation. This complexity arises because the tax system does not consider Bitcoin as cash at the point of payment, complicating the calculation of capital gains. To address these issues, the report suggests Congress could eliminate capital gains taxes on Bitcoin or create a de minimis tax threshold, exempting transactions below a certain amount from capital gains calculations. The proposed Virtual Currency Tax Fairness Act could allow personal crypto transactions to avoid capital gains taxes if gains do not exceed $200, although Anthony argues this threshold is too low and should be linked to average household spending.