Bill Miller, chief investment officer at Miller Value Partners and chief investor of the firm, believes that Bitcoin cannot be taxed by government because it is not possible to manage ownership rights.
“For them to reach their hand in there doesn’t make a ton of sense,” Miller told Natalie Brunell, Coin Stories Podcast on Wednesday.
Blockchain is the only system that records ownership, and not government
Miller is known as the early Bitcoin pioneer.BTCBitcoin advocates said that unlike traditional assets, such as real-estate, Bitcoin is not dependent on government infrastructure for verifying or enforcing property rights.
“When you buy or sell a house, all that recordation tax, all those taxes go toward keeping track of who owns what,” Miller said.
“The reality is if you think about why you pay taxes in society, it is to enforce property rights,” He added.
Miller stated that this was not required with Bitcoin. “The government didn’t create Bitcoin, so that is an important point to keep in mind,” “He said,” adding,
“The blockchain does that property automation for itself, right?”
In early 2018, rumors spread that Eric Trump, the son of US President Donald Trump, had proposed eliminating capital gain taxes for certain US-based cryptocurrency. Miller commented on the possible exemption of Bitcoin from capital gain tax. “Whether that ultimately happens or not, who knows but it is very cool that there is no wash sale rule on Bitcoin.”
He says that he’s not sure, when asked whether he thinks Bitcoin will ever have a property tax similar to the way properties in the US are taxed annually on their market value. “there is a good argument for it not to.”
Bitcoin Tax Uncertainty Signals “it is still early”
Miller also said that traditional asset managers face challenges when it comes to buying Bitcoin. This is mainly due to the uncertainty surrounding taxation.
“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,” He said.
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“That’s why I continue to say it is still early because the taxation rules around it are really interesting,” Added he.
Bill Miller IV is the son of legendary investor Bill Miller III, a fund manager known for beating the S&P 500 for 15 consecutive years at investment giant Legg Mason.
Miller III claimed to hold the following beliefs in an interview conducted by Miller III on January 20, 2022. 50% of his net worth in Bitcoin Investments in large industry companies like Michael SaylorStronghold Digital Mining and’s Strategy.
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Source: cointelegraph.com
