I read this on Twitter once and can't get it out of my head.
"Capital Gains Taxes are the fee you pay for the unpatriotic decision to hold your wealth in an asset other than dollars."
On another day I'll tackle why I believe Bitcoin is actually extremely patriotic and good for our good old United States of America. Today I'm going to keep it focused on how taxes are a mental blocker to thinking about being paid in Bitcoin and living on Bitcoin.
The first thing to realize is if you have a capital gain, the operative word is GAIN!
You made money, you literally are better off financially, so when people ask why is living on Bitcoin worth it if you have to pay capital gains, the answer is if you're doing anything in your life where you're being charged capital gains you are doing well.
For awhile in common bitcoin personal finance culture there was so much emphasis on never paying taxes instead of focusing on just stacking more money.
Living on Bitcoin, being paid in bitcoin, bill paying in bitcoin, holding medium length savings in Bitcoin is all about making more money, the complete goal of it is to hold more bitcoin than dollars.
Another thing to realize is you can start with a blank slate at anytime you want. You can count all your old bitcoin stacking as just that old in the past bitcoin stacking. That is your long term savings and that is what it is.
What Fold is doing is Fold is providing an account to integrate Bitcoin deeper into your personal finances with your fresh new income, your looking forward income.
Fold is an account for you to direct deposit to and bill pay from so that we ALL can stop using big banks together.
It moves bitcoin use up in our individual personal finances and it runs more volume through the Bitcoin network as it continues to take a bite out of the legacy system.
2024 is the first year Fold has had the ability to swap back to dollars from bitcoin in the app and Fold will provide a simple summary of the gains and losses of all your transactions. That form combined with not having to use previously acquired bitcoin that you don't know the cost basis of is how I was able to get over a lot of the mentally blocking complexity.
Also though I want to say, the end game is worth it, as Bitcoiners I think we should lean into a little bit of complexity and not fight it. I think we should realize this is the next step on watching Bitcoin continue to dominate over fiat money.
