Quote from: Z_MBFM on August 16, 2023, 10:40:01 AM

Quote from: Davidvictorson on August 12, 2023, 12:23:05 PM

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?

Tax matters are different for different countries. It depends on which country you live in. because this matter is determined by the government of each country. If I want to tell my personal side Bitcoin is not yet legalized in my country. And there is no local bitcoin wallet in my country so again bitcoin holdings cannot be tracked by the government. And we never pay taxes to the government for bitcoins. But when we convert these bitcoins to fiat and keep that money in bank or invest elsewhere then we have to pay tax return for that money every year.

Yes, it works according to the tax laws of each country. Bitcoin is taxed more than fiat in many countries. So many sell their bitcoins at the end of the year. Due to which the prices of Bitcoin and other cryptocurrencies are seen to decrease every year towards the end of the financial year. Because they convert to fiat to avoid high tax and buy crypto again when tax is paid. So it is not possible to specify what kind of laws a country has because there are 195 countries in the world and it is not possible for us to keep track of every country.