Cold storage in a boating accident remains the standard!

Unrealized capital gains 101,

You bought 1 bitcoin in Sept 2024 for $56k.

By the end of the year, it's valued at $100k, but you didn’t sell, leaving you with an unrealized gain of $44k.

Under a proposed tax plan,

you owe $11k in taxes (25% of $44k).

But you didn’t sell, so you don’t have the cash.

You pay the taxes out of your savings.

You continue to hold until August 2024, and Bitcoin drops to $30k.

You LOST $26k on the bitcoin,

PLUS you paid taxes on the $44k of “gains” you never actually realized, since they disappeared.

Initially, the tax is aimed at $100M+ portfolios, but it sets a precedent.

Eventually, it trickles down to everyone.

Now, every bitcoiner is at risk of paying taxes on assets they haven’t sold.

People stop buying Bitcoin.

Adoption "slows"