In a world where digital assets are rapidly becoming the cornerstone of global finance, the United States is at a crossroads. The Trump administration has repeatedly emphasized that it is committed to enriching everyday lives in the United States. From campaign pledges to restore economic strength to the appointment of forward-thinking advisers, the White House appears poised to usher in a new era of economic freedom. But if President Trump truly wants to promote wealth creation for average citizens and establish the United States as the world’s leading “Bitcoin superpower,” his administration must take the bold and innovative step of eliminating capital gains tax on Bitcoin. It is necessary to adopt appropriate policies.
Winds of change: lessons from abroad
The Czech Republic recently voted overwhelmingly to exempt capital gains from the sale of Bitcoin and other crypto assets from personal income tax if they are held for at least three years and meet certain income thresholds. It was approved and became a hot topic. This is not an isolated incident. Countries such as Switzerland, Singapore, the United Arab Emirates, El Salvador, Hong Kong, and parts of the Caribbean have zero or minimal capital gains taxes on Bitcoin, which would encourage adoption, financial innovation, and consumer confidence. We have long recognized that it can help.
As John F. Kennedy famously said, “A rising tide lifts all ships.” Applying this logic to economic growth through Bitcoin, the trend is global and rapidly rising. In a sea of ​​global liquidity and debt, America’s economic ship must navigate these digital currents. The policy choices of these countries, and the increasing prosperity of their citizens, are strong evidence that the United States can and should leverage Bitcoin as a tool for growth, rather than burdening it with an outdated tax model. sending a signal.
Trump’s own words: The path to prosperity
President Trump himself has expressed his intention to reconsider taxing Bitcoin. “They’re making you pay taxes on cryptocurrencies, and I don’t think that’s right,” he said in a recent interview, adding that people don’t pay capital gains taxes after using Bitcoin to buy small amounts. echoed the complaints of millions of Americans who considered it absurd. As a cup of coffee. “Bitcoin is money. If I use it to buy a coffee, do I have to pay capital gains tax?” he asked rhetorically, pointing out how current law prevents everyday transactions. emphasized. He added: “We may abolish taxes on cryptocurrencies and replace them with tariffs.”
This sentiment is not just a fancy phrase. Speaking at the Bitcoin 2024 conference in Nashville, President Trump declared his vision for the United States to become the world’s “Bitcoin superpower.” He also pledged to “make Bitcoin in America” ​​and transform the United States into a leading hub for Bitcoin innovation. Additionally, on December 5th, he appointed former PayPal Chief Operating Officer David Sachs as the “White House AI and Crypto Czar.” This is widely seen as a step towards introducing a forward-looking crypto policy.
Bitcoin Act of 2024: Strategic Reserves for the People
The United States has already taken groundbreaking steps in this direction. The Bitcoin Act of 2024 requires all Bitcoin held by federal agencies to be transferred to the Treasury Department and held in the Strategic Bitcoin Reserve. The Treasury Department must purchase 1 million Bitcoins over five years and hold them in trust for the United States. This government-level accumulation points to a long-term vision for incorporating Bitcoin into national fiscal strategies. But why stop there? Eliminating capital gains taxes on Bitcoin would create a positive feedback loop between national policy and individual prosperity. Because the federal government invests in and holds Bitcoin, private citizens can do the same without incurring punitive tax obligations.
Contribute to everyday life in America
For ordinary Americans, the cost of living and the pain of inflation were the focus of President Trump’s re-election campaign. Traditional strategies such as interest rate manipulation and quantitative easing are often like rearranging deck chairs on a sinking ship in the face of truly systemic economic challenges. Bitcoin provides a life raft, dare we say it, a digital Noah’s Ark for Americans looking to preserve and grow their wealth against the corrosive forces of inflation. Eliminating capital gains taxes on Bitcoin would allow citizens to trade, invest, and save a stable, finite asset without wasting federal taxes on every incremental gain.
The ripple effect here is clear. More people adopting Bitcoin as a store of value and medium of exchange means increased demand, which could further strengthen the U.S. Treasury’s strategic holdings. It’s a virtuous cycle, a positive feedback loop. As the value of Bitcoin rises, the nation’s wealth base also expands, helping pay down the national debt, strengthening the dollar’s hegemony in global trade, and making Americans truly wealthy and secure.
Why America Needs Bitcoin
Bitcoin is no longer a niche experiment for a few enthusiasts. It has evolved into a mainstream and urgent priority for ordinary Americans and especially for the emerging generation that will shape our nation’s economic future. This is not an ideological appeal. It’s a practical reality backed by data. According to the Stand With Crypto Alliance, a nonprofit organization dedicated to transparent blockchain policy, more than 52 million Americans currently own some form of cryptocurrency. Nearly 9 in 10 Americans believe the financial system needs updating, and 45% say they would not support a candidate who stands in the way of crypto innovation. These numbers represent a large swell across party lines. According to research from Stand With Crypto, 18% of Republicans, 22% of Democrats, and 22% of independents own cryptocurrencies. This breaks through the usual tribal politics and shows a fundamental truth. Bitcoin is now a national policy issue, rather than an appendage to a fringe agenda.
It is clear that the United States wants to take the lead. 53% of Americans want crypto companies to be based in the U.S. and for innovation and the wealth it creates to remain in the country. Among Fortune 500 executives, 73% prefer U.S.-based partners for cryptocurrency and Web3 initiatives, demonstrating companies’ desire to keep the U.S. at the forefront of global financial development.
If we don’t act now, we risk repeating the mistakes of the past. America once led the world in advanced manufacturing, but 92% of the most sophisticated semiconductor production is now concentrated in Taiwan and South Korea. We cannot afford to cede our future financial situation to other regions. Bitcoin is more than just an investment class. It is the digital backbone of a rapidly evolving monetary system. If the United States wants to maintain its economic supremacy, maintain its innovation leadership, and ensure that ordinary Americans have access to a stable, growth-oriented financial future, it must embrace Bitcoin wholeheartedly. In doing so, the country can secure its position as a global Bitcoin superpower, uplift its people, strengthen its economic foundations, and protect its strategic interests in the 21st century digital economy.
America charts its course
By aligning with global best practices and enacting forward-thinking policies, the United States can position itself as a beacon of financial freedom and innovation. Eliminating capital gains taxes on Bitcoin would signal to investors, entrepreneurs, and the general public that America is serious about leading the digital economy in the 21st century. It’s not just about being “Bitcoin friendly.” It’s about making sure average Americans have the tools they need to weather the turbulent waters of the economy.
The complexity and inefficiency of taxing all digital transactions is an unnecessary burden on innovation and everyday life. Americans deserve better. They have the freedom to transact in the digital world without punitive oversight.
Essentially, this is an opportunity for the United States to do what it has always done best: innovate, adapt, and lead. Eliminating capital gains tax on Bitcoin is more than just fulfilling a campaign promise. It will set the stage for long-term prosperity, help our people secure their economic future, and solidify the United States as the world’s number one Bitcoin champion. Indeed, a rising tide lifts all ships. And what better ship to embark on than the Bitcoin Ark, captained by a visionary administration truly determined to make America great again?
This article is a take. The opinions expressed are solely those of the author and do not necessarily reflect the opinions of BTC Inc or Bitcoin Magazine.
