I really think taxing unrealized gains is a terrible idea for investors. It’s frustrating to think we’d have to pay taxes on profits we haven’t even cashed in on yet, especially in a market as unpredictable as crypto. It could put people in a tough spot, forcing them to sell their investments just to cover tax bills on gains that could disappear in an instant.
On top of that, it complicates everything when it comes to filing taxes. We’d have to keep a close eye on the value of our assets all year round, and that’s just asking for mistakes. If this kind of policy actually gets pushed through, I can see a lot of people looking to invest in places where the tax situation is friendlier, which would be a shame for innovation here. It just makes so much more sense to tax only the gains we actually realize when we sell.