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?
First of all everyone has their own outlook towards life and technology. If that senior citizen from a western country prefer 1950's time better than today's time then that's his own choice. The analog times were really great for the people who lived in that era because they were used to those things and they have spent most of their lives with those analog based tech stuff. However, the good thing about that senior citizen is that he still got interested in Bitcoin and invested money into it which really show that how visionary that person is.
Well, trusting Bitcoin's self-custody is also his own right and choice and I must say that having Bitcoin in one's own custody is the safest way to go with it for long term. He has done a really smart step to secure his Bitcoin and holding it in that way is truly appreciable, but his complaining about Bitcoin's sitting in that hard wallet isn't necessary at all because I also think that the Bitcoin's should stay in that wallet for the time being and whenever he finds a much profitable price range only then he should think about selling those Bitcoin.
I don't think that by selling his coins he'll be taxed and that's not even necessary for him. The Bitcoin is totally decentralized and it's someone's own property, and if someone wants to sell it then that person doesn't need to pay any taxes. I would recommend your friend to go with the decentralized way if he wants to be safe from those huge taxes because the centralized and regulated way will always have taxes during each step. I really don't think that at current times most of the countries are taxing the users who are converting their Bitcoin into fiat, but if in future something like that happens then your friend should try to decentralized way to sell his Bitcoins.