How good is this in Bitcoin economics if The US approved this propositon?

[bitcoindusts]

I read in this news: BREAKING: Americans Could Soon Pay Taxes in Bitcoin.  It stated that citizen of the US can pay federal taxes with Bitcoin without capital gains tax to fund the US strategic reserve if approved.

Rep. Warren Davidson introduces a bill allowing Americans to pay federal taxes in bitcoin without capital gains tax, funding the U.S. Strategic Bitcoin Reserve.

I am not an economist but this gets my interest, so I am asking what is the effect if this bill passes the legislation and got implemented to the Bitcoin economy?

[Ambatman]

There's a strength but also a huge cost. It adds another layer of legality to Bitcoin in the sight of the public
But opens doors for stricter regulations and AML.
They just want a method to tax citizens holding on Bitcoin while smartly directly thr fund to a strategic reserve
This is like them buying. But like always not with their money.

[Odusko]

There's a strength but also a huge cost. It adds another layer of legality to Bitcoin in the sight of the public
But opens doors for stricter regulations and AML.
They just want a method to tax citizens holding on Bitcoin while smartly directly thr fund to a strategic reserve
This is like them buying. But like always not with their money.

Regulations and Centralization of Bitcoin ecosystem I the only fear that comes to mind with all the United States position and adoption of Bitcoin, really seriously this borders me alot since with government exposure comes further regulation and interference from the government who become a third party player but with some level State control that could affect the way and manners that we use Bitcoin.

[bigimann]

There's a strength but also a huge cost. It adds another layer of legality to Bitcoin in the sight of the public
But opens doors for stricter regulations and AML.
They just want a method to tax citizens holding on Bitcoin while smartly directly thr fund to a strategic reserve
This is like them buying. But like always not with their money.

Regulations and Centralization of Bitcoin ecosystem I the only fear that comes to mind with all the United States position and adoption of Bitcoin, really seriously this borders me alot since with government exposure comes further regulation and interference from the government who become a third party player but with some level State control that could affect the way and manners that we use Bitcoin.

I totally agree with Odusko. More adoption from big governments always sounds good at first, but it also brings more rules, more monitoring, and less privacy. Once they treat Bitcoin like a controlled asset, they can decide how people use it, where they store it, and even how much tax they pay. This is why many Bitcoin users worry not about adoption itself, but about the control that comes with it.

[Joy_learns_crypto]

You pay your taxes in bitcoin this year and next year you will be paying taxes for having bitcoin, paying taxes in bitcoin is the government trying to have a data about those using bitcoin.
The anonymity of bitcoin is what the government wants to wash off and approving payments of tax in bitcoin can look like bitcoin adoption but it may be to write up a data about those who using bitcoin for their tax payment.

[Ambatman]

Regulations and Centralization of Bitcoin ecosystem I the only fear that comes to mind with all the United States position and adoption of Bitcoin, really seriously this borders me alot since with government exposure comes further regulation and interference from the government who become a third party player but with some level State control that could affect the way and manners that we use Bitcoin.

There's always a cost and in this case am starting to see that the cost outweighs the benefit.
The major benefit the government can bring is to affect the price positively
But that's nothing if we no longer Bitcoin.
Centralization doesn't mix well with freedom and the tax policy can go a way in improving Bitcoin function as a medium of exchange.

[0x000369]

bro this would literally be the most bullish thing thats ever happened to bitcoin hands down

all these whales sitting on 10x 100x gains they just pay their fat tax bills straight in btc no cap gains trigger government gets the coins puts them in the strategic reserve never sells

its free fucking bitcoin for uncle sam every year millions of btc getting vacuumed out of circulation locked up forever while the holders save a fortune on taxes

like ambatman said they buying but not with their own money lmfao absolute galaxy brain move yeah sure more kyc more tracking whatever man the price impact would be so violent we all retire

privacy maxis gonna cry but the rest of us eating good

bitcoin printer finally go brrrrr

[Bitcoin_Arena]

The US is not the only Country in the world. Also, are the US citizens the only ones using Bitcoin?  
Let's be realistic for once and stop pretending like everything rotates around a country that doesn't even have the highest population in the world, heck, it's already loosing grip as a superpower.

I don't think only US policies will move Bitcoins backward or forward in the long run. It is a decentralized network, last time I recall.

[Die_empty]

The US is not the only Country in the world. Also, are the US citizens the only ones using Bitcoin?  
Let's be realistic for once and stop pretending like everything rotates around a country that doesn't even have the highest population in the world, heck, it's already loosing grip as a superpower.

I don't think only US policies will move Bitcoins backward or forward in the long run. It is a decentralized network, last time I recall.

The US still remains the biggest economy in the world and the majority of the largest crypto companies are registered in that country. We saw how the Spot ETF approval in the US affected the Bitcoin market. No other top economy has made friendlier laws than the US. How many countries in Europe have approved Bitcoin as a reserve currency?

For now, the US economy has the most influence in the industry. There would be stiff competition if China had opened up to cryptocurrencies. Sadly, the US will continue to have the biggest shot until other countries step up. 
 

[fuguebtc]

The US is not the only Country in the world. Also, are the US citizens the only ones using Bitcoin?  
Let's be realistic for once and stop pretending like everything rotates around a country that doesn't even have the highest population in the world, heck, it's already loosing grip as a superpower.

I don't think only US policies will move Bitcoins backward or forward in the long run. It is a decentralized network, last time I recall.

I really hope what you say is true, that the US is no longer the leading power and they are no longer strong enough to impact the entire global economy. But in reality, I believe that is still far away.

No matter how much we try to deny it, the United States is still a superpower, they contribute 25% of the world's GDP even though they are not the most populous country. Or by this year, they will still be the global financial center and account for nearly 50% (62 trillion) of the total global financial market value of 128 trillion.

Meanwhile, although the bitcoin network is decentralized, its value still depends on the cash flow of the economy. So I think their policies will still have significant impacts on bitcoin.


https://siblisresearch.com/data/world-market-cap-profits/

[abhiseshakana]

If the above plan is approved and ratified, it would symbolically be a major issue because it gives Bitcoin state legitimacy. From a market perspective, this policy could stimulate demand and drive up the price of BTC. What I'm a little confused about is how to establish hedging and valuation regulations, given that payments in BTC make taxes volatile. Geopolitically, the US would have an additional strategic tool (non-liability reserves), although the risks are also significant, namely volatility and political pressure.

The strategic interests behind this policy are to increase revenue through new sources, allowing taxpayers to realize unrealized gains (deferred taxes) and providing liquidity options for crypto holders. Symbolically, the US adapts and weakens the anti-crypto narrative, embracing innovation without losing control. It also reduces the chances of competition from other countries gaining monopolies over digital assets/payment rails. Bitcoin is used as a digital strategic reserve to hedge against financial system risks and the possible fragmentation of the global payment system (similar to the Strategic Petroleum Reserve). It represents a political compromise for pro-crypto congressmen, arguing that it facilitates citizen contributions and builds reserves without increasing debt.

The positive impact of this policy is increased institutional demand if many taxpayers exercise this option, potentially leading to a short- to medium-term price revaluation. This is a strong signal that the government accepts Bitcoin as a strategic asset, followed by increased institutional and retail adoption. On the other hand, if the Treasury holds BTC, the government's balance sheet will fluctuate with the BTC price; these fluctuations influence perceptions and fiscal policy. If the Treasury needs to sell, a large sale could depress the market, and how the Treasury executes (OTC vs. spot) becomes crucial. Without a capital gains tax on tax payments, taxpayers can use this mechanism to optimize taxes by creating arbitrage strategies, for example, realizing gains through tax payments versus selling them on the market. If the Treasury hoards BTC, it reduces the circulating supply (tightening the market), driving further price volatility.

[khiholangkang]

I read in this news: BREAKING: Americans Could Soon Pay Taxes in Bitcoin.  It stated that citizen of the US can pay federal taxes with Bitcoin without capital gains tax to fund the US strategic reserve if approved.

Rep. Warren Davidson introduces a bill allowing Americans to pay federal taxes in bitcoin without capital gains tax, funding the U.S. Strategic Bitcoin Reserve.

I am not an economist but this gets my interest, so I am asking what is the effect if this bill passes the legislation and got implemented to the Bitcoin economy?

This is an innovative step but if the US is still targeting a certain amount of tax in their form of income, of course that is not so good even though it is a good step to start bitcoin adoption, we know that US finances are also not in surplus, especially with large debts, this is not a solution step for the current situation, because their goal is to make bitcoin a strategic fund not to be turned back into government spending.

[Spaceman1000$]

I read in this news: BREAKING: Americans Could Soon Pay Taxes in Bitcoin.  It stated that citizen of the US can pay federal taxes with Bitcoin without capital gains tax to fund the US strategic reserve if approved.

Rep. Warren Davidson introduces a bill allowing Americans to pay federal taxes in bitcoin without capital gains tax, funding the U.S. Strategic Bitcoin Reserve.

I am not an economist but this gets my interest, so I am asking what is the effect if this bill passes the legislation and got implemented to the Bitcoin economy?

I don't like this concept of wanting to tax bitcoin holders, this is an investment that has its own risk, what percentage of risk is the government taking on the side of the investor to warrant them tax those investors, the entire risk is basically on the side of the investor hundred percent, and since the government is not partaking on the risk involvement then they shouldn't tax people. This is like the government wanting to benefit from what they did not sow.

[SilverCryptoBullet]

I read in this news: BREAKING: Americans Could Soon Pay Taxes in Bitcoin.  It stated that citizen of the US can pay federal taxes with Bitcoin without capital gains tax to fund the US strategic reserve if approved.

This is good for Bitcoin investors as they can pay tax directly with Bitcoin. It's kind of strange to allow US citizens to buy, sell, invest their money in bitcoins while don't allow them using bitcoins for paying tax. They already are allowed to use bitcoins for many things in the USA, so paying tax is reasonable acceptance.

The snowball starts and Bitcoin adoption has continued its growth with a likely win-win collaboration between Bitcoin and Bitcoin users. Bitcoin users are important forces for Bitcoin adoption while Bitcoin adoption growth brings more benefit to Bitcoin users. It happens in the USA and it will be expanded with similar acceptance in other nations globally.