Eliminating cap gains on bitcoin would probably put a lot of downward pressure on price near term, no?

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I doubt it. Bitcoin exchange rate basically just tracks USD money supply. But as far as cap gains impact would go, pretty sure real currencies don't have capital gains taxes, so this would be recognition of Bitcoin's currency status.

Also, lots of people like me don't refuse to sell Bitcoin because of the taxes - we just don't file taxes.

*trade, not sell. Typo