When bitcoin is used in nano payments where people are completing a transaction for each second they use a service in real time, streaming music for a couple of hours would create 10,000 capital gains tax events that all need to be recorded logged and filed to the IRS, each one with an attached detailed analysis of the bitcoin price when you acquired it, disposed of it, and that spread for tax purposes.
Listening to music alone would accumulate to 3 million individual capital gains tax events a year.
Then there's machine to machine payments. Do software agents and bots that own bitcoin get taxed on each of the 100,000 lightning network transactions they propagate every single day?
What the actual fuck...
This is the literal equivalent of trying to tax and require strict record keeping of every single letter within every single email and message sent over the internet.
How stupid are these people..
Countries that currently have no capital gains taxes like Singapore, Dubai, Monaco, Switzerland, Malaysia, New Zealand, all allow completely unfettered frictionless use of digital currencies like bitcoin, and they will benefit tremendously with digital finance exploding in their countries making them the new financial hubs of the new digital world.
Meanwhile countries that continue to tax every single crypto transaction will stagnate and get left behind during this digital finance wave of the future.
London and New York being the center of the old world of finance have draconian licences and immense tax record keeping burdens that strangle and suffocate the use of digital finance in their jurisdictions. They might be the center of the old financial world but they are going to be the absolute backwater of the new digital financial world the way they are going.
I'm moving to a country that doesn't tax crypto. Not so I can save money, but so I can live in a city that actually has a future in the new digital economy and isn't going to stagnate into self-inflicted poverty.
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