A question :
How can you pay capital gains taxes on something where you have not received any gains? Should Capital gains not only have an affect when you sell some coins and you receive the fiat value? (minus the purchase price)
Let's say for example I have 100 bitcoins and I keep that in a wallet. I only bought those coins and hoarded it, so I cannot pay taxes on something that did not generate any income for me.
I ask this question, because some governments want people to pay taxes on the bitcoins they own and not on the actual gain that they will receive when they sell those coins in the future. (They might even sell those coins at a loss in a few years, so then there will not be any profits or gain from those coins)
How can you pay capital gains taxes on something where you have not received any gains? Should Capital gains not only have an affect when you sell some coins and you receive the fiat value? (minus the purchase price)
Let's say for example I have 100 bitcoins and I keep that in a wallet. I only bought those coins and hoarded it, so I cannot pay taxes on something that did not generate any income for me.
I ask this question, because some governments want people to pay taxes on the bitcoins they own and not on the actual gain that they will receive when they sell those coins in the future. (They might even sell those coins at a loss in a few years, so then there will not be any profits or gain from those coins)