An interesting question on Reddit. (I'm permabanned and cba to create another account since they seem to be able to track if you create another account even when using VPN)
> Stealing your wealth no matter what
You buy bitcoin, price goes up, you sell the bitcoin for a profit. Government takes 30 or 40% of the profit through "realized gains tax". Since the whole point of investing in an asset like bitcoin is to prevent them from stealing your wealth via inflation of the fiat currency, it seems like "realized gains tax" is just the government saying "F*** you, we are going to steal your wealth no matter what."
>
> I know there are loopholes that rich people with expensive lawyers can use to get around this stuff, so it's really only hitting the poor or those who are unknowledgeable.
>
> Am I missing something here?
The only thing I'd mention from a practicality point of view is how much do you lose in Capital Gains vs in inflation?
CGT is typically about 20% but it varies based on your country and laws.
It is also 20% on the profit only, but let's assume the worst.. you were forced due to lack of documentation to report your cost basis as 0 and you made no profit.
Then you lose 20% of your wealth when you withdraw.
But if you keep it in cash, you make no profit and lose 10% per year compounding. Assuming real inflation of 10% per year.
After 2 years you lose 21%, after 3 years you lose 33%.
So you only need to hold for 3 years to guarantee that you suffer less losses than inflation.
The government will take, but a logical mind will identify how to legally reduce what they take from you while staying within your risk tollerance.
Big Barry Bitcoin
npub1pk…tpxa6
2024-12-04 16:21:53
Author Public Key
npub1pktmatjk0l8vn3jhfuwxaasjd65kn4ye9sce3egup7k993f8fg2q5tpxa6Published at
2024-12-04 16:21:53Event JSON
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"content": "An interesting question on Reddit. (I'm permabanned and cba to create another account since they seem to be able to track if you create another account even when using VPN)\n\n\u003e Stealing your wealth no matter what\nYou buy bitcoin, price goes up, you sell the bitcoin for a profit. Government takes 30 or 40% of the profit through \"realized gains tax\". Since the whole point of investing in an asset like bitcoin is to prevent them from stealing your wealth via inflation of the fiat currency, it seems like \"realized gains tax\" is just the government saying \"F*** you, we are going to steal your wealth no matter what.\"\n\u003e \n\u003e I know there are loopholes that rich people with expensive lawyers can use to get around this stuff, so it's really only hitting the poor or those who are unknowledgeable.\n\u003e \n\u003e Am I missing something here?\n\nThe only thing I'd mention from a practicality point of view is how much do you lose in Capital Gains vs in inflation?\n\nCGT is typically about 20% but it varies based on your country and laws.\n\nIt is also 20% on the profit only, but let's assume the worst.. you were forced due to lack of documentation to report your cost basis as 0 and you made no profit.\n\nThen you lose 20% of your wealth when you withdraw.\n\nBut if you keep it in cash, you make no profit and lose 10% per year compounding. Assuming real inflation of 10% per year.\n\nAfter 2 years you lose 21%, after 3 years you lose 33%.\n\nSo you only need to hold for 3 years to guarantee that you suffer less losses than inflation.\n\nThe government will take, but a logical mind will identify how to legally reduce what they take from you while staying within your risk tollerance.",
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