Bill Miller Challenges the Logic Behind Taxing Bitcoin
The government lacks the right to tax Bitcoin, as ownership management requires no administrative efforts, according to Bill Miller IV. He argues that Bitcoin's ownership is recorded on the blockchain, independent of government infrastructure, unlike traditional assets like real estate, which necessitate tax-funded recordation. Miller highlights that taxes exist to enforce property rights, which are unnecessary for Bitcoin since it was not created by the government. He notes the potential for Bitcoin to be exempt from capital gains tax and mentions the absence of a wash sale rule for Bitcoin. Miller expresses uncertainty about Bitcoin facing property taxes but suggests strong arguments against it. He emphasizes that taxation uncertainty remains a significant barrier for traditional asset managers in acquiring Bitcoin, indicating that the regulatory landscape is still developing.
