Core Insights - The current U.S. tax regulations create barriers for everyday cryptocurrency use, as transactions trigger capital-gains paperwork, leading consumers to prefer stablecoins for practical spending [1][13][14] - Despite a downturn in crypto markets, major players are focusing on developing infrastructure for real-world crypto payments, indicating a shift towards practical applications rather than speculative trading [5][6][8] Market Sentiment - A year ago, Bitcoin was valued over $90,000, creating a sense of optimism among traders and blockchain enthusiasts [2] - This year, the mood is more subdued due to market volatility erasing nearly all gains, affecting those who invested at peak prices [4] Infrastructure Development - Companies like Kraken, Block, and Klarna are launching new payment tools, such as a Mastercard debit app and Bitcoin payment capabilities for millions of merchants, to enhance crypto payment infrastructure [6][7] - The integration of crypto payments into e-commerce platforms has significantly improved, making it easier for retailers to accept cryptocurrencies [9][12] Retailer Perspective - Most retailers view crypto as a long-tail enhancement rather than a primary revenue driver, treating it similarly to early PayPal or Klarna offerings [11] - Retailers do not expect crypto spending to dominate their sales but see it as an incremental option for specific customer segments [11] Regulatory Challenges - The primary challenge for crypto payments lies in regulatory issues, as spending cryptocurrencies is treated as a taxable event under current IRS rules, complicating low-value transactions [13][14] - The friction in crypto payments is not in the checkout process but in the post-purchase tax documentation, which hinders everyday use [15] Stablecoin Adoption - Stablecoins are gaining traction as they function more like digital cash, avoiding capital gains complexities and making them more intuitive for merchants [16] - This Black Friday, stablecoins are expected to dominate crypto transactions across various sectors, including electronics and fashion, rather than Bitcoin [16]