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No, you did not miss the bitcoin train.

We are just getting started.

Just because bitcoin went up a lot does not mean it cannot go up a lot more. On the contrary, the more it goes up, the more it demonstrates product-market fit, the more likely it is to go up.

Bitcoin is different from stocks, bonds, and commodities because it has a much, much larger addressable market. Let's compare:

Apple's total addressable market is 8 billion people who can own an iphone and laptop. A lot of them already do, and a lot of them are too poor, so there's just not much more room for growth. Maybe Apple can increase by 5x, or 10x, but it would need to introduce new products that are wildly popular to do so, which is very difficult. Ultimately, an Apple stock is a claim on cashflow, and it is priced based on expectations of Apple cashflow, and it is not easy to continue to increase cashflow once you're a trillion dollar company.

But bitcoin is money, and its total addressable market is all of the planet's cash balances, which currently include something in the range of $100 Trillion in physical government cash and checking and saving bank accounts, plus ~$120 Trillion in government bonds, ~$22 Trillion in gold, and arguably, a chunk of the world's real estate and stock markets, which people are holding to beat inflation, and not to take risk in search of return. All in all, bitcoin's Total Addressable Market is in the range of $200-300 Trillion, which is about 100 times larger than what it is now. All of these assets are trash compared to bitcoin, and there is no reason for anyone intelligent to hold a significant position in them. Everything held in these assets has lost ~90% of its value against bitcoin in the last 5 years, and will likely keep losing another 90% every few years. The only things maintaining significant demand for these assets at this point are their holders' old age, intelligence deficiency, and susceptibility to government propaganda. They can continue to hold these assets as they decline, making them poorer, or they can shift to bitcoin and start getting richer. Either way, and regardless of what they do, the world's wealth is going to end up in the hard money, and not in the obsolete moneys of the twentieth century.

Bitcoin has no cashflow to price it. Most nocoiners think this makes it a ponzi, but that is only because they have never experienced real money, and only have as a frame of reference the hot potato trash fiat money which everyone smart tries to exchange for hard assets as soon as they can. They are incapable of understanding people demanding to hold money for its own sake, for its ability to hold value, and not for cashflow. This is how gold became the money of the world without generating any cash flow, and this is why bitcoin, which is infinitely better money than gold, is going to continue to monetize and grow.

Nonetheless, bitcoin's demand is highly variable, and with leverage, it will likely continue to be significantly volatile for the foreseeable future, so always keep in mind that it could decline significantly, and manage your position accordingly.

SwBratcher 5mo ago

Translated for your state and federal political seats to hear:

Bitcoin as Digital Savings: A Case for Revised Taxation Policy

Dear [Representative/Senator Name],

I write to urge your reconsideration of how Bitcoin is taxed, particularly the treatment of Bitcoin transactions as taxable capital gains events. Current policy fundamentally mischaracterizes Bitcoin’s primary function and inadvertently penalizes constituents for protecting their savings from inflation.

Bitcoin Functions as a Digital Savings Account:

While some adopters initially approach Bitcoin as a speculative investment, those who truly understand Bitcoin are fleeing inflation. Bitcoin should be understood as a digital savings account rather than a speculative investment. When your constituents move money from a traditional savings account to Bitcoin, they are not seeking “gains” - they are seeking to preserve their purchasing power against monetary debasement.

Even though some gains are generated from the adoption curve of more people buying Bitcoin, this is healthy because it encourages adoption of something that will be healthy for our families, healthy for our municipalities, and healthy for our nation. We want this adoption rewarded and encouraged.

Inflation Protection:

Traditional savings accounts lose purchasing power at roughly 3-8% annually due to inflation. Bitcoin serves as a digital safe harbor that maintains purchasing power over time, similar to how gold historically protected savings from currency debasement.

Savings Preservation, Not Speculation:

When a constituent exchanges inflating dollars for Bitcoin, although some are making an investment bet - all are taking an action to defend their savings. The dollar value increase merely reflects the dollar’s declining purchasing power, not true economic gains.

Penalizing Prudent Savings: Current tax policy effectively penalizes citizens for protecting their life savings from inflation. This creates a perverse incentive where responsible savers are taxed for preserving their purchasing power while those who allow inflation to erode their savings face no tax consequences.

How This Impacts Your Constituents

Working Families: Middle-class families watching their savings lose value to inflation turn to Bitcoin as a digital savings vehicle. Current tax policy punishes them for this prudent financial decision.

Retirees: Fixed-income retirees using Bitcoin to preserve their nest egg face complex tax reporting requirements and potential tax liability simply for maintaining their purchasing power.

Small Business Owners: Entrepreneurs using Bitcoin as a business savings account face administrative burdens that discourage adoption of superior monetary technology.

Everyday Transactions: Citizens cannot practically use Bitcoin for daily purchases when every transaction creates a potential taxable event, defeating its utility as functional money.

Policy Framework for Constituent Service

To best serve your constituents, I recommend legislation that recognizes Bitcoin’s monetary nature.

Treat Bitcoin as Currency, Not Property:

Reclassify Bitcoin transactions under currency exchange rules rather than capital gains, similar to how foreign currency transactions up to $1000 are exempt from reporting.

Savings Account Exemption:

Consider exempting Bitcoin held in personal accounts from capital gains treatment, recognizing its function as digital savings rather than investment speculation.

De Minimis Threshold:

Establish meaningful transaction thresholds below which Bitcoin transactions are not taxable events, enabling practical use as money.

Inflation Adjustment:

If gains treatment continues, adjust the basis for inflation to tax only real economic gains rather than nominal dollar increases caused by currency debasement.

Competitive Advantage for State

Innovation Leadership:

States and districts that embrace sensible Bitcoin policy will attract the digital economy’s most innovative companies and highest-skilled workers.

Economic Development:

Clear, favorable Bitcoin regulations will position your constituency at the forefront of the digital monetary transition, creating jobs and economic opportunity.

Constituent Wealth Preservation:

Enabling your constituents to protect their savings through Bitcoin will help them maintain financial security in an inflationary environment.

The Bottom Line

Even your constituents that are seeking to “get rich” through Bitcoin - are taking actions to help them stay financially whole. You cannot stop federal debasement of the US Dollar, but you can help ensure that your constituents are encouraged to better weather that storm, regardless of which motivation led them to the strongest shelter.

Remove capital gains taxation on Bitcoin, and you pave the path to a more sovereign constituency. Current tax policy punishes them for making responsible savings decisions and forces them to choose between preserving their purchasing power and avoiding complex tax complications.

Legislation that treats Bitcoin as the digital savings account it offers will serve your constituents’ financial interests, promote American leadership in digital monetary technology, and align tax policy with economic reality.

I urge you to champion legislation that stops penalizing prudent savers and recognizes Bitcoin for what it fundamentally is: a superior form of digital savings that protects working families from monetary debasement.

Thank you for your consideration of this critical issue affecting your constituents’ financial wellbeing.

Respectfully,

[Your Name]

[Your Title/Credentials]

[Contact Information]

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Discussion

SeditiousPermie 5mo ago

Seperate money and state. Who gives a fuck what your statist friends think. Please stop begging the cartel.

SwBratcher 5mo ago

Agreed, separate money and state. My land and people are under laws drawn by my peers. I want laws that align with what’s best for the people. I want to influence that when possible.

SeditiousPermie 1mo ago

In other words, you want to force people to do things or else they will force you? As long as you're the one doing the forcing it will be fine?

Why?

SwBratcher 1mo ago

Nope. Not at all what I said. More like, if we’re to have laws made by the elected, they should be fair, in line with the social contract of our country and represent our goals as a country long term, therefore I choose to speak up.