I know I am meandering, even though I am not going to move off of my point that property tax can still be considered as a form of unrealized gain.. even if it is expressed in terms of value rather than gain.
Well it is clear to me that you are not going to change your position but I am going to go deeper into the argument in case someone else reads it who is more open to change their position, or who is not clear about it. And it is simply that a tax on unrealized gains is exactly the same as the tax on realized gains, with the only difference that it is applied to you without having sold, on an annual basis. This is different from property taxes, because if you pay for example $6K of annual property tax and due to a market downturn your house is worth 20% less, they will not lower your property tax by 20%, at most they will freeze it, while in a tax on unrealized gains the year after the market downturn the tax will be 0, plus you can deduct the 20% loss in subsequent years of increases and/or in the return of the same year.
Now it seems that you are almost selling taxes on unrealized gains as being a less oppressive tax as compared with property tax, which truly may well be true... since once a person is in such system of annually assessing and paying unrealized gains, then the value would be assessed merely from that year, whether up or down.
Getting into the system, if a person has 1 BTC, but he bought it in 2015, then the first year that he is assessed unrealized gains in 2025 for the period through December 31, 2024, he would be having a gain of $99,750 if we presume he had bought his 1 BTC at $250 in 2015 and the price at the end of 2024 was $100k... each year after that would be merely how much was gained (or lost) from year to year. I will concede there is a difference in the sense that ONLY the gain is being assessed, which seems to make such taxing of unrealized gain seem less oppressive a compared with property taxes.