Re: Would We Pay Taxes When We Don't Exchange Bitcoin for Fiat Anymore?
So, a senior citizen in one of the western countries makes a complaint that he preferred the 1950s when everything made sense and life was simple. He loves the analog times more than the digital. Despite this, he trusts Bitcoin self-custody, and that is the reason why he holds bitcoin. He complains that his bitcoin just sits in his hard wallet, and he doesn't even know what to do with it. According to him, his fear is that if he sells it during the next bull run, he will be taxed, and he doesn't want that. A question arises: Would taxes still be applicable if a time comes when exchanging bitcoin for fiat is no longer necessary?
Taxes will be applicable at all times. Do you really think that your(or his) Bitcoin holdings won't be taxed if you(or he) never convert BTC to fiat?
There are income taxes, capital gains taxes and VAT taxes. You can't escape taxes in one way or another.
If that senior citizen doesn't know what to do with his BTC, then the best decision would be to just HODL them.
I think that exchanging BTC to fiat will always be necessary, because Bitcoin will never become widely accepted as a legal tender.
It's normal for old people to feel nostalgia about the good old times, when life was simple and they were young. I don't know how this relates to the question you are asking.
