Bill Miller: Why Bitcoin Shouldn't Be Taxed
Bill Miller Challenges Bitcoin Taxation
Bill Miller IV, CIO of Miller Value Partners, recently argued against taxing Bitcoin, asserting that governments lack the justification for such taxation due to the decentralized nature of the cryptocurrency. He made these points during an interview on the Coin Stories podcast.
Blockchain's Role in Ownership
Miller, a known early Bitcoin advocate, emphasized that unlike traditional assets like real estate, Bitcoin doesn't rely on government infrastructure for property rights verification or enforcement. "When you buy or sell a house," he stated, "all those taxes go toward keeping track of who owns what. The reality is, you pay taxes to enforce property rights." However, with Bitcoin, this is handled by the blockchain itself. "The blockchain does that property automation for itself," Miller explained. The government didn't create Bitcoin, and its decentralized nature eliminates the need for government oversight in property rights management.
Capital Gains Tax and Future Implications
Miller also commented on the potential for Bitcoin exemption from capital gains taxes, noting the absence of a wash sale rule for Bitcoin—a significant advantage over traditional assets. Regarding the possibility of future property taxes on Bitcoin, he acknowledged the debate but suggested a strong argument exists against such taxation.
Tax Uncertainty as a Sign of Early Adoption
Miller highlighted the continuing challenges faced by traditional asset managers investing in Bitcoin, primarily due to tax uncertainties. He said, "Even as fund managers, we still have huge impediments to actually buying it because taxation rules around bad income if we buy ETFs and sell them at the wrong time, so that all needs to be worked out." This uncertainty, he concludes, is further evidence that the Bitcoin market is still in its early stages of development.
About Bill Miller
Bill Miller IV follows in the footsteps of his father, legendary investor Bill Miller III, known for his remarkable 15-year streak of outperforming the S&P 500. His father has publicly stated that 50% of his net worth is invested in Bitcoin and related companies.
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