The way to get BTC flowing as money has less to do with spending it than it does with accepting it for goods and services. The issue with this of course is that most of humanity (or at least, folks in the "west") work for an employer who largely dictates the terms of their employment. Accepting BTC is something that needs to be done by those running businesses or otherwise freelancing. It's not a message that needs to be repeated to everyone that has no direct involvement in selling goods or services to a wide customer base, but rather, one that needs to be surgically targeted to those that are in a position to do so.

And yes, there are good strategies for those willing to do so to incentivize people to spend their BTC rather than fiat. The most common, easy option is to charge a premium for fiat, which is easy to justify, given that the systems by which people accept fiat, or manage their fiat cash, are going to charge them for the use of them. 4% or more is a common upcharge for fiat by those merchants accepting both if only for the credit card fees, and when you then consider their cost of moving that fiat into bitcoin, I've seen 10%, or my favorite, 8.21% (think about the 8 turned sideways...). Not exactly a hard decision for most people who are regularly stacking to just size up their next buy order and spend from their existing stack for those goods and services.

The other part of course is capital gains. Less the actual cost of it -- as Parker Lewis and nostr:npub1cn4t4cd78nm900qc2hhqte5aa8c9njm6qkfzw95tszufwcwtcnsq7g3vle have pointed out among others, having capital gains tax means you've had a gain; a good problem to have. More the convenience factor. To get the money flowing, it'd be helpful to have systems so that people who are self custodying can hook them into their wallets, track their cost bases, and track capital gains when they spend, and then generate a form that can be used for easy filing. A regulatory shift to provide de minimis levels for small purchases would be fantastic, as it is the standard for forex, but at the very least a tool to make the insanity of filing for each coffee or bookd purchase something we can look past would be beneficial. The way the IRS gets incentivized to stop nagging us is to drown them in paperwork they have no appetite to actually process, and this sort of tool would be how we would call their bluff.

Telling people they have to spend their bitcoin when nobody accepts it just doesn't work; we need the circular economy to create the positive feedback loop. So that we CAN build value organically. A few of these exist, but to build more, we need more merchants. Consumers are the easy part.