Replying to Avatar Dr. Bitcoin, MD

I no longer worry about the US federal debt being unpayable. It’s easily payable.

How? Government can manufacture financial conditions such that they guarantee themselves 28% of all capital gains. Or at least 28%.

How? Alternative Minimum Tax. If you’re wealthy, meaning earn more than $86,100 dollars a year, AMT guarantees you will pay a minimum of 26% of all income over $86,100. If you make over roughly $250,000, you pay 28% on that income. And if you make over roughly $600,000, you get 28% tax on the originally exempt $86,100 and pay that extra 2% on income between $250k & $600k.

When bitcoin shoots up 100x in price over the next 30 years, that’ll be roughly $100T they’ll tax at 28%. Problem solved.
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0x 5mo ago

Except debt isn’t taxed. Bitcoiners can leverage asset appreciation as collateral to live off like UHNWI do. The meta game is broken for the common man that assumes everyone plays fairly. Governments can’t even collectively block capital flight.

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Dr. Bitcoin, MD 5mo ago

Except debt doesn’t destroy tax obligation…you can theoretically pledge 100% of your bitcoin as collateral for a loan but that doesn’t mean the lender gets to keep the collateral just because you failed to pay. You see, 28% of the minimum collateral needed to repay the loan belongs to the government when used to pay the loan. Just because one loan can be paid with another just delays the inevitable: eventually a person will pay off their final loan. And then they will die. And as death is a taxable event, they will pay 28%.