In a world where digital assets are quickly becoming a cornerstone of global finance, the United States finds itself at a crossroads. The Trump administration has repeatedly emphasized its dedication to making ordinary Americans more prosperous. From promising to restore economic strength during the election campaign to appointing forward-thinking advisers, the White House appears poised to usher in a new era of financial freedom. But if President Trump really wants to boost wealth creation for the average citizen and establish America as the leading country in the world,bitcoin Superpower”—his administration must adopt a bold and transformative policy: eliminating capital gains taxes on bitcoin.
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The winds of change: lessons from abroad
The Czech Republic recently made headlines when its Parliament voted overwhelmingly to exempt capital gains from bitcoin and other crypto asset sales from personal income tax, as long as they are held for more than three years and meet certain income thresholds. This is not an isolated event. Countries such as Switzerland, Singapore, the United Arab Emirates, El Salvador, Hong Kong and parts of the Caribbean have long recognized that little or no tax on bitcoin capital gains can help spur adoption, financial innovation and consumer confidence.
As John F. Kennedy said: “A rising tide lifts all boats.“If we apply that logic to economic growth through bitcoin, the tide is global and rising rapidly. In a sea awash with global liquidity and debt, America's economic ship must navigate these digital currents. The political choices of these nations – and the growing prosperity of their citizens – send a powerful signal: the United States can and should leverage bitcoin as a tool for growth, not burden it with outdated tax models.
Trump's own words: a path to prosperity
President Trump himself has indicated his willingness to rethink bitcoin taxes. “They make them pay taxes on cryptocurrencies, and I don't think that's right.” he said in a recent interview, echoing the frustrations of millions of Americans who find it absurd to pay capital gains taxes after using bitcoin to buy something as small as a cup of coffee. “bitcoin is money and do you have to pay capital gains taxes if you use it to buy a coffee?” he asked rhetorically, highlighting how current laws discourage everyday transactions. He added: “Maybe we'll get rid of cryptocurrency taxes and replace them with tariffs.“
This sentiment is not just a rhetorical flourish. Trump, speaking at the bitcoin 2024 Conference in Nashville, proclaimed his vision of America becoming the “world” of the world.bitcoin Superpower.“He has also committed to”Make bitcoin in the United States,“Turn the United States into a leading center of bitcoin innovation. Additionally, on December 5 he named former PayPal COO David Sacks as his 'White House ai and Cryptocurrency Czar,' a move widely seen as a step toward implementing forward-looking crypto policies. future.
The bitcoin Law of 2024: a strategic reserve for the people
The United States has already taken monumental steps in this direction. The bitcoin Act of 2024 requires that all bitcoin held by any federal agency be transferred to the Treasury to be held in a strategic bitcoin reserve. Over five years, the Treasury must purchase one million Bitcoins and hold them in trust for the United States. This buildup at the government level shows a long-term vision for incorporating bitcoin into the national financial strategy. But why stop there? Eliminating the capital gains tax on bitcoin would create a positive feedback loop between national policy and personal prosperity. As the federal government invests in and owns bitcoin, private citizens could do the same without facing punitive tax obligations.
Serving the Everyday American
For ordinary Americans, the cost of living and the impact of inflation were focal points of President Trump's re-election campaign. Traditional strategies (interest rate manipulations, quantitative easing) often amount to rearranging deck chairs on a sinking ship when facing truly systemic economic challenges. bitcoin offers a lifeline (dare we say, a digital Noah's Ark) for Americans trying to preserve and grow their wealth against the erosive forces of inflation. Eliminating capital gains taxes on bitcoin would allow citizens to trade, invest, and save in a stable, finite asset without the loss of federal taxes on each incremental gain.
The ripple effect here is clear: more people adopting bitcoin as a store of value and medium of exchange means stronger demand, which could further bolster the U.S. Treasury's strategic holdings. It's a virtuous circle, a positive feedback loop. As the value of bitcoin grows, so does the nation's wealth base, helping pay down the national debt, bolstering the dollar's hegemony in global trade, and actually making Americans richer and more secure.
Why America needs bitcoin
bitcoin is no longer a niche experiment reserved for a small group of enthusiasts. It has become a widespread and urgent priority for ordinary Americans, especially the new generation who will shape our nation's future economy. This is not an ideological claim; It is a practical reality backed by data. According to the Support crypto Alliancea nonprofit organization dedicated to transparent blockchain policies, more than 52 million Americans now own some form of cryptocurrency. Nearly nine in ten Americans believe the financial system needs an upgrade, and 45% say they would not support candidates who stand in the way of crypto innovation. These numbers represent a huge cross-party surge: Stand With crypto's research shows that 18% of Republicans, 22% of Democrats, and 22% of independents own cryptocurrencies. This transcends usual tribal politics and points to a fundamental truth: bitcoin is now a topic of national political conversation, not a side note on a fringe agenda.
The demand for the United States to lead is clear. 53% of Americans want cryptocurrency companies to be based in the United States, ensuring that technological innovation and the wealth it generates remain in their country. Among Fortune 500 executives, 73% prefer US-based partners for their cryptocurrency and Web3 initiatives, indicating a corporate desire to keep the United States at the forefront of global financial progress.
Failure to act now risks repeating past mistakes. The United States once led the world in advanced manufacturing, but today 92% of the most sophisticated semiconductor production is located in Taiwan and South Korea. We cannot afford to cede the future financial landscape to other regions. bitcoin is not just another type of investment; It is the digital backbone of a rapidly evolving monetary system. If the United States wants to preserve its economic hegemony, maintain leadership in innovation, and ensure that everyday Americans have access to a stable, growth-oriented financial future, it must wholeheartedly embrace bitcoin. By doing so, the nation can secure its place as a global bitcoin superpower, elevating our citizens, strengthening our economic foundation, and safeguarding our strategic interests in the 21st century digital economy.
America, charting the course
By aligning with global best practices and enacting forward-thinking policies, the United States can position itself as a model of financial freedom and technical innovation. Eliminating the capital gains tax on bitcoin would signal to investors, entrepreneurs, and everyday citizens that the United States is serious about leading the 21st century digital economy. It's not just about being “bitcoin compatible”; it's about ensuring average Americans have the tools they need to navigate turbulent economic waters.
The complexity and inefficiency of taxing every digital transaction is an unnecessary burden on innovation and everyday life. Americans deserve better: They deserve the freedom to transact in a digital world without punitive oversight.
At its core, this is America's opportunity to do what it has always done best: innovate, adapt, and lead. Eliminating capital gains taxes on bitcoin would not only fulfill a campaign promise; would lay the foundation for long-term prosperity, empower citizens to secure their financial future, and cement the United States as the world's leading bitcoin champion. Indeed, a rising tide lifts all boats, and what better ship to embark on than a bitcoin Ark, captained by a visionary administration determined to Make America Great Again?
This article is a Carry. The opinions expressed are entirely those of the author and do not necessarily reflect those of btc Inc or bitcoin Magazine.
