Nation-state Bitcoin tax game theory will play out similar to how the Spot Bitcoin ETF fee war played out.

When the Spot Bitcoin ETF’s were preparing to launch we saw the issuers strive to have low fees. Why is this… don’t they want to have a higher fee to make more money?

The ETF issuers understood that the game is about having the largest ETF in town with the most capital.

Similarly, when we look at nation-states, the game is about attracting capital as well. By overtaxing Bitcoin, countries will be pushing Bitcoin and business out of their country.

Countries who create a Bitcoin friendly, low-tax environment will wreak the benefits as capital flows into their country, while those who don’t will see capital flow out of the country.

Over time nation-states with high taxes and harsh regulations will flip their stance as it is a losing strategy.

#bitcoin #tax #gametheory