Governments do not have the right to tax bitcoin because the management of property rights does not require any administrative effort, explains the director of chief investments of Miller Partners, Bill Miller IV.
“For them, to reach his hand, he does not make much sense,” Miller told Natalie Brunel on the podcast of stories on Wednesday.
The blockchain makes the property registration, not the government
Miller, known for his first Bitcoin (BTC) advocacy, said Bitcoin does not rely on government infrastructure to check or apply property rights, unlike traditional assets such as real estate.
“When you buy or sell a house, this whole tax on recording, all of these taxes will follow what has what,” said Miller.
“The reality is that if you think about the reason why you pay taxes in society, it is to enforce property rights,” he added.
Miller said it was not necessary with Bitcoin. “The government has not created Bitcoin, so this is an important point to keep in mind,” he said, adding:
“The blockchain automation of properties for itself, right?”
Earlier this year, rumors circulated that the son of American president Donald Trump, Eric Trump, proposed to eliminate taxes on capital gains on certain American cryptocurrencies. Regarding the possibility that Bitcoin is exempt from capital gains tax, Miller said: “Whether it happens ultimately or not, who knows, but it is very cool that there is no rule of sale of washing on Bitcoin.”
When asked if he sees Bitcoin having a property tax, similar to the way in which the properties are imposed in the United States each year depending on the market value, he says that he is not sure, but “there is a good argument so that it is not the case”.
Bitcoin tax of uncertainty signals “it is still early”
Meanwhile, Miller said that traditional asset managers are still confronted with obstacles when buying Bitcoin, mainly due to the uncertainty about taxation.
“Even as fundamental managers, we always have huge obstacles to buy it because the imposition of rules concerning the bad income if we buy ETFs and sell them at the wrong time, so that all are developed,” he said.
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“This is why I continue to say that it is still early because the tax rules that surround it are really interesting,” he added.
Bill Miller IV is the son of the legendary investor Bill Miller III, a fund manager known for having beaten the S&P 500 for 15 consecutive years at the investment giant Legg Mason.
In an interview of January 2022, Miller III said that he has 50% of his net value in Bitcoin and related investments in major industry companies such as Michael Saylor’s strategy and the BTC Stronghold Digital Mining.
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