Hypothetically if the dollar went down by 50% and nobody new bought bitcoin, bitcoiners would have huge paper gains, but maybe no real term gains. Is that right? Then on sale or trade, the taxes would cause you to be negative. How do you think through this?
Discussion
Personally I just don’t think about selling or trading, keeps it simple. And when I use it I don’t tell anyone
First of all- I agree on the not selling or trading, I just am trying to mentally prepare myself for BTC going up a lot in strictly dollar terms, and then having a large tax burden as a consequence that nets me negative returns in real terms
The way I see it there’s no tax burden unless you’re cashing out, so I just don’t think about it. And if it really flies and you do, it’s a nice problem to have. Pay unto Caesar what’s owed unto Caesar and all that. The alternative is definitely to worse 🤷🏼♂️
I live in hope things really change and will look differently by then