Post
Topic
Board Bitcoin Discussion
Re: 'Bitcoin is Inflation-hedge' - 'Haha, we just Tax you, that's the same'
by
JuxtaposeLife
on 27/10/2024, 00:33:07 UTC
It seems the recent talk of taxing Bitcoin, along with statements from the ECB and the US Fed, stems from the irony of Bitcoin’s journey as a high-risk, low-reward asset that was initially overlooked by high-net-worth individuals and institutions. Typically, these entities have a significant advantage: they invest in opportunities before IPOs, influence rules and regulations, and control the flow of fiat currency. But Bitcoin offered no such early advantage. For institutions like BlackRock, an early investment of substantial capital would have been almost impractical. Imagine, for instance, if BlackRock had tried to put $500 billion into Bitcoin when it was valued at $100 per coin—it would have risked distorting the market entirely, with considerable risk and little immediate reward.

Instead, Bitcoin’s early growth was propelled by individuals willing to take on that risk, often representing a significant share of their own net worth, even up to 50%. As a result, they contributed to Bitcoin’s rise to a trillion-dollar asset, gaining influence and financial returns that institutions typically command. Now, as these institutions recognize Bitcoin’s potential and want a stake in it, they’re not pleased to find themselves following rather than leading.

That’s exactly the irony: all this talk about taxing Bitcoin seems like a strategic narrative while these institutions quietly increase their exposure. The more they ease into Bitcoin, the more they signal to others that it’s a viable asset -- effectively paving the way for broader adoption. It’s a fascinating cycle where the very entities that once hesitated now drive momentum, underscoring Bitcoin’s unique rise. It's fun to watch this play out in our time. It'll be interesting to see what history paints the 2009-2029 period as...