As governments all over the world move to endorse ‘crypto” and the industry through it’s taxation… the bull case for just hodl’n only BTC gets stronger.
At first many governments and the mainstream financial world tried to FUD Bitcoin out of existence but of course that didn’t work. The second phase is trying to stifle Bitcoin and the wider crypto sector through onerous legislation and increased taxation.
When it comes to regulation as we know from the BTC ETFs Vs SEC, Bitcoin has again survived and thrived. Almost every government in the world has now fully endorsed Bitcoin through their taxation policies that surround it. In the aftermath of a global pandemic all governments are keener than ever to raise taxes to pay down budget deficits. However for most governments taxation hasn’t only been restricted to just Bitcoin, rather all of crypto and it’s industry. Historically governments have used long-term taxation to silently cripple things they don’t want/ like in society. Over the years many have laid the foundation intact just that on crypto.. however once more BTC will not only survive…but thrive.
There’s a growing push by governments to ensure people are paying crypto taxes. Where years ago they silently laid the foundations for crypto tax legislation, these days they are getting increasingly vocal in pointing them out and enforcement. All the major exchanges have been visited by major global tax authorities and confirmed their intention to work with them and provide them information where requested.
More crypto related tax compliance software exists than ever as do accountants selling crypto as a specialism. Be it losses or gains with the changing crypto tax landscape more individual investors than ever are being dragged into the need to report crypto taxes. Interestingly, those with messy portfolio’s with thousands of altcoin transactions creating variable capital gains and losses and many with thousands of fragments of staking rewards will suffer the greatest financial burden/ stress.. enough to say.. f**k this, I’m going Bitcoin Maxi.
For the most part as an easy to store, highly divisible and liquid asset that for most typical users may only be likely to have to report on the odd capital gain.. Bitcoin is simple, effective and easy. Both as an asset and when it comes to tax.
Real estate, Classic cars, precious metals etc ate often highly investable and make good stores of long-term value however Bitcoin is much more manageable. As capital gains tax across the world are increased HODL makes increasing sense.
TL;DR
Dumping messy alts and avoiding investment in illiquid high maintenance assets when it comes to increasing global tax burdens means buying and hodling BTC is starting to make more sense than ever.
Bitcoin maximalism has a very bright future.
submitted by /u/jam-hay
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