I read yesterday a post on here mentioning that the UK Government plans to increase its CGT to 40%.
Many Bitcoin hodlers acknolwedge the folly of Government money printing, and in response decide to exit into Bitcoin as an alternative.
If the Bitcoin strategy works out, by increasing significantly in value in comparison to Fiat, won't governments simply re-capture those who decided to exit their system, by way of rediculous CGT increases?
If BTC hits a million, and you want to take profits, are you really going to pay uncle sam 400,000 of your 1m?
Whats your thinking on this?
Are there legal, more efficient ways of handling this type of circumstance?
As I see it, CGT Allowances may help, a bit.. assuming the Governments don't simply scrap them..
Combining an allowance with a partner may also be an option for some..
The recent Michale Saylor podcast video made an interesting suggestion, which was to borrow fiat against the value of your BTC assets ... apparently this is CGT exempt, and also income tax exempt.. however, it introduces more risk back in to the equation, plus, some of us don't like the idea of 'getting in to debt', or being beholden to anyone .. is that prudent or limited thinking?
Finally, in a world where BTC were to actually replace fiat currencies, could one simply buy a good or service thats priced in BTC, with their long term holdings, without generating a CGT event?
In the good old days we could have voted with our feet, and moved to a more friendly CGT juristiction, but in a world with ever tightning restrictions & control, I don't think this will be quite as simple for the majority of people, going forward..
What do you think?
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