Why Bitcoin (or fiat currency) tipping can't replace traditional online advertising

In many countries you cannot simply receive donations from anonymous people and pay your taxes legally.

You need to setup legal entity for this, because individuals can't accept donations without written contract on paper (with signatures). At least you can use printer, not typing machine. Only legal entities can receive anonymous payments.

You need to prove with documents the source of your income and provide the personal details of people that donated to you.

This is not related to Bitcoin. The problem is the same if you use PayPal or other method of payment.

So, you ignore the law or just don't accept donations.

(Technically you can receive donations. You need to fill out 3 pages form for every donation per day. So, if you receive donations in 200 days in the year, you should print 200 * 3 = 600 pages. And when you become the subject of a tax audit or tax inspection, you will have to prove the grounds for earned income, which can not happen without a written contract (on paper with signatures). Of course, the contracts should contain data about persons who made the donations.)

Receiving payments from Google AdSense (for example) is much more feasible (without too many bureaucratic walls).

Another example of bullshit: people in many countries can't just sell ebooks without setting up a legal entity (which can cost more than profits from the ebooks). This is why they use third parties, which receive payments from end customers and pay royalties to the authors.

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