“Taxes Don’t Matter”: People Race To Bitcoin Because Of Government-Induced Inflation, Says Jimmy Song

"Taxes Don't Matter": People Rush To Bitcoin Because Of Government-Induced Inflation, Says Jimmy Song

A renowned Bitcoin developer and proponent Jimmy Song says the rising interest in Bitcoin is driven by Government-induced inflation. He said this in reaction to the recent news of a proposed tax increase by the Biden administration.

Taxes don’t matter, because the government can steal from us whenever they want through inflation. This is why people are coming into Bitcoin”, he wrote in a tweet.

The Biden administration has proposed a bill to increase capital gains tax to as high as 43% for those who earn up to $1 million annually. The news has attracted a lot of interest in the cryptocurrency space where a lot of crypto investors have made significant gains since 2020. 

Many of the investors have invested in Bitcoin as a hedge against inflation. There has been rising inflation since 2020 as the government printed more money to support citizens in the COVID-19 pandemic. As Bitcoin continued growing in spite of the dollar printing, investors considered it to be a hedge against the rising inflation.

It will appear that Bitcoin is proving itself as a hedge. The asset grew over 300% in 2020 and has so far gone up by roughly 200% in 2021. The price recently hit the highest level ever at over $60,000, although it has not been a smooth ride all the way.

"Taxes Don't Matter": People Rush To Bitcoin Because Of Government-Induced Inflation, Says Jimmy Song
BTCUSD Chart By TradingView

The asset is currently experiencing a crackup which some analysts say could be due to the news of the tax increase.

Also reacting to the tax increase buzz, crypto evangelist Anthony Pompliano wonders why the government needs to increase tax when they can just print more money. If the bill gets passed into law, cryptocurrency investors and holders could be among those paying the highest taxes in the country as their digital asset accruals continue to expand, unless they decide to hold their assets without selling.

Share:

Share on facebook
Facebook
Share on twitter
Twitter
Share on pinterest
Pinterest
Share on linkedin
LinkedIn
On Key

Related Posts

Promoting Bitcoin Could Damage The Reputation Of Banks, ECB Warns

The European Central Bank has cautioned banks against promoting Bitcoin investments, arguing that the cryptocurrency’s apparent calm will likely pan out, plunging prices lower. In a Wednesday blog dubbed “Bitcoin’s Last Stand” by Ulrich Bindseil and Jürgen Schaaf, the director general and advisor of the ECB of the institution noted that banks risked incurring long-term

Bitcoin, Ether Not Securities Because They Have No Issuer: Belgium Regulator

The regulator of the European country said cryptocurrencies issued by computer codes are not considered securities. Brussels is neutral to blockchain technology, a stark contrast to the US. Brussels’ financial authority has clarified that cryptocurrencies without an issuer cannot be classified as securities. The Financial Services and Markets Authority (FSMA) announced that digital assets issued

Over 10K Bitcoin (BTC) Moved To Crypto Exchange, Are Miners Selling?

Bitcoin price rallied after Fed Chair Jerome Powell hinted at slower rate hikes in December and upcoming sessions. The BTC price hit a high of $17,194 with an over 200% jump in trading volume. On-chain data indicates that miners facing financial issues are indeed selling their Bitcoin holdings, with Bitcoin hashrate decreasing continuously due to