Opinion: Robin Singh, CEO of Koinly
Is there hunting for Bitcoin Hodles, where the price of the original has increased more than 600,000 % since the beginning of 2013?
Perhaps – if governments continue to wake up the Bitcoin value, the talisman “You just pays only when sold” can be close to the past.
What if the wealth tax is the answer to the revenue tax agencies without time to lose it? It is an annual tax on the total net value of a person – cash, investments, property and other assets – minus any debts, applying whether these assets were sold or income generated. The idea is to increase public revenues and eliminate inequality, mainly by imposing taxes on the wealthy. Wealth tax takes a clip what you own, not what you earn.
Countries like Belgium, Norway and Switzerland have baked wealth taxes in their tax systems throughout the ages, however, some of the world’s largest economies – such as the United States, Australia and France – have been largely directed.
This may change. More governments are looking for wealth taxes for encryption. In December 2024, French Senator Selfie Vermelite took a step further, indicating that Bitcoin (BTC) was classified on “non -fruitful”, which means imposing taxes on its gains every year – whether it was sold or not.
Yes, the word of all the holders of the favorite assets is the tax of unrealized capital gains. It will be naive to assume that other countries do not think about the same idea.
With Bitcoin’s important gains and executives in industry such as Ark Invest’s Cathie Wood looking at a price of $ 1.5 million by 2030, I will bet that magic ball 8 will say, “Signs indicate yes.”
The growing global interest in the wealth tax
It may seem out of reach, but it is difficult to ignore gains. The average bitcoin in the long run is already sits on great profits.
The incentive is clear. The wealth tax in Switzerland rises to 1 % of the value of the wallet, and governments know that there is a lot to collect.
Countries are eating – sooner or later. Consider how capital profit tax has become the base.
The United States provided a capital profit tax in 1913, the United Kingdom jumped on board 52 years after 1965, followed by Australia in 1985.
Governments are likely to consider wealth tax
Governments are likely to be enhanced by the idea – whether they recognize it or not. If any country considers it seriously, Germany may be a major candidate, although it canceled the wealth tax in 1997.
recently: Ukraine floats 23 % tax on some encryption income and exemptions for Stablecoins
In July 2024, the unloading of 50,000 BTC may be $ 58,000 had seemed to be a smart step for the German government, but when Bitcoin reached 100,000 dollars a few months later in December, it became clear that they left a wealth on the table.
In the past, a costly error …
Will this be remembered as an equal footing with Gordon Brown that sells half of the UK gold reserves at $ 275 an ounce?
The imposition of such a rule on the wealthy comes with clear dangers.
To understand the real impact of taxes on a country, you only need to follow money – specifically, as the millionaires move. Modern data indicates that high -value individuals leave countries like the United Kingdom in large numbers, and they are heading to tax -friendly havens such as Dubai.
Possible repercussions of wealth tax
Will countries risk losing these individuals to take advantage of unrealized gains on bitcoin and other assets?
Bitcoin volatile and unknown. Although some events may lead to enormous losses, governments may still push forward policies that ultimately push millions, only to realize that the comparison was not worth it.
On the contrary, US President Donald Trump recently signed an executive that defines a strategic reserve for Bitcoin – a clear signal of Hodl. There is no doubt that this has other countries given a similar step.
If the countries are adopting the Hodl mentality, can this mean wealth taxes outside the table in those countries? Only the time will be told.
One thing is certain: Bitcoin Hoders collected enough fortune to put themselves on the radar of the tax authorities. Whether this changes the basic or major political policy, the encryption community will not sit quietly.
Opinion: Robin Singh, CEO of Koinly.
This article is intended for general information purposes and does not aim to be and should not be considered legal or investment advice. The opinions, ideas and opinions expressed here are alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
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