It’s frustrating watching governments treat crypto like an easy target while ignoring the risk and volatility we carry alone. Setting up a company can help. I’ve done it myself for part of my holdings because at least the tax is clear and you have a structure to plan around. But once you declare it, you stay on their radar for life.
You nailed it with that last sentence.
Next week, I have a half hour session with the most experienced crypto lawyer in my country. His specialty is international tax law, and he has written many books about it. What I picked up from them is that the IRS in my country is leaving almost no options for crypto holders. Our socialist nation ran out of other peoples money and is now looking at crypto holders like 10 hyenas look at the carcass of a dead horse. They want it. All of it.
I believe that this crypto lawyer will advise me to limit taxes to 20% by buying the crypto assets with my company balance sheet. I know one of his clients who does that. Obviously I prefer to pay no tax, but I can live with the 20% tax if I know that it ends there.
However, I am very convinced that it will not end there in the long run.
The reason why Satoshi invented bitcoin was to protect society against the constant debasement of currency by central banks, keeping people poor for centuries.
He wanted to give people an opportunity to leave that vicious cycle of enslavement.
Mayer Amschel Rothschild, the founder of the infamous Rothschild dynasty once said:
"Give me control of a nation's money supply, and I do not care who makes its laws".
I thoroughly understand how that enslavement works, but I believe that most people who own bitcoin do not. I think they see it as an investment opportunity without understanding the long run.
For now my country only has tax on income, and bitcoin can be a part of that. But a neighbouring country already has a tax on total asset value and unrealized gains.
That is outright theft, and they will want to tax you for life just for owning bitcoin. If we let them succeed, by giving up private custody and by registering crypto assets so that governments can tax them with impunity, the little people will never get out of the vicious cycle of enslavement by debasement.
Jews understand this, and they have been hoarding gold for centuries. It's why so many jews are rich.
I believe that bitcoin is the new gold, but we will only succeed if we keep it away from CeFi and governments with their totalitarian tax rules.