If people start paying more often with bitcoin on square for example. I am sure pretty fast some merchants would accept bitcoin with another wallet and avoid taxes that way

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Exactly, that's the idea, it's all a chain:

- Bitcoiners know they can pay in bitcoin and they do.

- Merchants discover Bitcoin.

- Discovering Bitcoin leads many merchants to other alternatives such as self-custody.

- Self-custody opens up a world of possibilities when it comes to tax evasion.