Opinion: Robin Singh, CEO Kinly
Is there a hook for Bitcoins hodlers, and the price of assets has increased by over 600,000% since the beginning of 2013?
Perhaps – if the governments come to the value of Bitcoin, the whole mantra “you pay tax only when you sell” can soon be a past.
What if the tax on assets is a response to eager income tax agencies without time to lose? This is an annual tax on the total net value of a person – cash, investment, real estate and other assets – minus all debts, used, whether these assets are sold or generated by income. It is about increasing public revenues and limiting unevenness, mainly by taxing ultra-protective. The wealth tax charges the clip from what you have, not what you earn.
Countries such as Belgium, Norway and Switzerland had property taxes in their tax systems for centuries, but some of the largest economies in the world – such as the USA, Australia and France – have largely appeared clearly.
It can change. More governments are looking at taxes of wealth for cryptocurrencies. In December 2024, French Senator Sylvie Vermeillet went a step further, suggesting that Bitcoin (BTC) was marked as “unproductive”, which would mean taxing his profits each year – whether it is ever sold.
Yes, the favorite word of every asset holder is the unrealized capital profit tax. It would be naive assumption that other countries do not think about the same idea.
Because significant profits and directors of the Bitcoin industry, such as Cathie Wood from the Ark Invest, looking at the price of $ 1.5 million by 2030, I bet that the magic 8-piłka would say: “signs indicate yes.”
Growing global interest in wealth tax
This may seem far -reaching, but it is challenging to ignore the profits. The average long -term Bitcoin owner is already sitting on significant profits.
The encouragement is obvious. Tax on Swiss property increases to 1% of the portfolio value, and governments know that there is a lot to collect.
Countries catch – sooner or later. Think about how the tax profit tax became the norm.
The US introduced a tax profit tax in 1913, Great Britain jumped on board 52 years later in 1965, and Australia took place in 1985.
Governments probably consider a wealth tax
The governments probably entertain the idea – regardless of whether they admit it or not. If any country considers him seriously, Germany may be the main candidate, despite the fact that in 1997 it broke the tax on wealth.
Last: Ukraine swims 23% tax on certain cryptocurrency income, exemptions for Stablecouins
In July 2024, the reference of 50,000 occupied BTC in the amount of USD 58,000 could seem to be an clever movement for the German government, but when Bitcoin reached $ 100,000 only months later in December, it became clear that they left a fortune on the table.
In retrospect, an costly mistake …
Will this be remembered as a mistake on an equal footing, and Gordon Brown sells half of the British gold reserves for $ 275 per ounce?
Applying such a principle is a affluent risk.
To understand the actual impact of taxation on the country, just follow the money – in particular where the millionaires move. Recent data show that people with high net value leave countries such as Great Britain in crowds, guided by tax -friendly, such as Dubai.
Potential consequences of wealth tax
Do nations risk losing these people to apply unrealized profits from bitcoins and other assets?
Bitcoin is unstable and full of unknowns. While some events can lead to huge losses, governments can continue to go forward with a policy, which ultimately drives millionaires, only to realize that the compromise was not worth it.
And vice versa, US President Donald Trump recently signed an executive order establishing Bitcoin strategic reserve – a clear nod to Hodl mentality. Undoubtedly, this has other nations considering a similar movement.
If the nations adopt the way of Hodl thinking, did it mean that property taxes are outside the table in these countries? Only time will show.
One thing is certain: Hodlers Bitcoin gathered a sufficient number of wealth to put themselves on tax authorities’ radars. Regardless of whether it causes basic changes in politics or simply in political mode, the cryptocurrency community will not sit quietly.
Opinion: Robin Singh, CEO Kinly.
This article is used for general information purposes and should not be and should not be treated as legal or investment advice. The views, thoughts and opinions expressed here are themselves and do not necessarily reflect or represent the views and opinions of Cointelegraph.
