The only bad thing about the toliet tank is the cover. A fish that needs to breath at the surface can't live in one. So much for a Betta-Potty. XD All puns aside, I seriously doubt watching someone go to the bathroom would scar the fish. The same goes for showers, teeth brushing, shaving, and the like. I would feel sorry for them if they could smell through the glass. Now that would be rough. XD
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