🇺🇸 Federal Reserve Bank of Minneapolis 🇺🇸 says "A legal prohibition against #bitcoin can restore unique implementation of permanent primary deficits, and so can a tax on Bitcoin."
They want to use this formula.
The tax works by continuously reducing the value or returns from holding Bitcoin, and the government collects these taxes as part of their revenue.
Got my interest, but I think I need this explained to me like I'm 5
In simple terms, the tax formula ensures that, regardless of how well Bitcoin performs, any gains you make will be reduced to the point where they fall below what you’d get by holding the equivalent in traditional currency. While Bitcoin’s value may rise, the taxes will adjust to keep your returns lower, similar to what a traditional investor might experience, effectively limiting your financial growth.
That reveal why they want to ban self custody. In the first line they said for every owner of unit of #bitcoin. You can't know who own #bitcoin if you self custody.
Make sense ?
Yeah. Good luck with that.
