In a world where digital assets are rapidly becoming a cornerstone of global finance, the United States stands at a crossroads. The Trump administration has repeatedly emphasized its commitment to making ordinary Americans more prosperous. From pledging to restore economic power on the campaign trail to hiring forward-thinking advisers, the White House appears poised to usher in a new era of financial freedom. But if President Trump really wants to increase wealth creation for ordinary citizens – and cement the United States’ position as a world leader…Bitcoin’s superpower“—His administration must adopt a bold, transformative policy: eliminate capital gains taxes on Bitcoin.
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 – provided 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 zero or minimal capital gains taxes on Bitcoin can help spur adoption, financial innovation and consumer confidence.
As John F. Kennedy famously said: “A rising tide lifts all boats.“If we apply this logic to economic growth through Bitcoin, the tide is global – and rising fast. In a sea awash with global liquidity and debt, the American economic ship must navigate these digital currents. The political choices of these countries – and the growing prosperity of their citizens – It sends a strong signal: The United States can and should leverage Bitcoin as a growth tool, not burden it with outdated tax models.
Trump’s own words: The path to prosperity
President Trump himself has indicated his willingness to rethink taxation of Bitcoin. “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 ridiculous to pay capital gains taxes after using Bitcoin to buy something as small as a cup of coffee.Bitcoin is money, and you have to pay capital gains tax if you use it to buy coffee?he asked rhetorically, highlighting how current laws discourage everyday transactions. He added:Maybe we will get rid of taxes on cryptocurrencies and replace them with tariffs.“
This sentiment is not merely a rhetorical flourish. Trump, speaking at the Bitcoin 2024 conference in Nashville, declared his vision for America to become “the world.”Bitcoin’s superpower.“He also pledged to”making bitcoin in america,“Transforming the United States into a leading hub for Bitcoin innovation. Furthermore, he appointed David Sachs, former chief operating officer of PayPal, as the White House’s “AI and cryptocurrency czar” on December 5 – a move widely viewed as It is a step towards implementing forward-looking cryptocurrency policies.
Bitcoin Act of 2024: A Strategic Reserve for the People
The United States has already taken tremendous steps in this direction. The Bitcoin Act of 2024 would require all bitcoins held by any federal agency to be transferred to the Treasury to be held in a strategic bitcoin reserve. Over five years, the Treasury must purchase 1 million bitcoins, and hold them in trust for the United States. This accumulation at the government level shows a long-term vision for integrating 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 politics and personal prosperity. While the federal government invests and holds bitcoin, private citizens can do the same without facing punitive tax liabilities.
American Daily Service
For ordinary Americans, the cost of living and the sting of inflation have been focal points of President Trump’s re-election campaign. Conventional strategies – interest rate manipulation, quantitative easing – often amount to rearranging deck chairs on a sinking ship when faced with real systemic economic challenges. Bitcoin provides a life raft — dare we say, a digital Noah’s Ark — for Americans trying to preserve and grow their wealth in the face of the corrosive forces of inflation. Removing capital gains taxes on Bitcoin would allow citizens to transact, invest and save in stable, limited assets without draining federal taxes on each additional 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 support the US Treasury’s strategic holdings. It’s a virtuous cycle, a positive feedback loop. As Bitcoin’s value grows, so does the country’s wealth base, helping pay down the national debt, strengthening the dollar’s dominance in global trade, and making Americans richer and more secure.
Why America needs Bitcoin
Bitcoin is no longer a niche experience reserved for a small group of enthusiasts. It has evolved into a major and urgent priority for ordinary Americans — especially the rising generation who will shape our country’s future economy. This is not just an ideological appeal. It is a practical fact backed by data. According to Standing with the Crypto Alliancea non-profit 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 modernization, and 45% say they will not support candidates who stand in the way of cryptocurrency innovation. These numbers represent a broad bipartisan wave: Stand With Crypto research shows that 18% of Republicans, 22% of Democrats, and 22% of independents own cryptocurrencies. This goes beyond the usual tribal politics and points to the fundamental fact that Bitcoin is now a talking point in national politics, not a side note on a fringe agenda.
The demand for America 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 stays home. Among Fortune 500 executives, 73% prefer US-based partners for their cryptocurrency and Web3 initiatives, indicating the companies’ desire to keep America at the forefront of global financial progress.
Failure to act now risks repeating the mistakes of the past. Once upon a time, America led the world in advanced manufacturing, but today 92% of the most advanced semiconductor production is located in Taiwan and South Korea. We cannot leave the future financial landscape to other regions. Bitcoin is not just another investment category; It is the digital backbone of a rapidly evolving monetary system. If the United States wants to maintain its economic dominance, maintain leadership in innovation, and ensure that ordinary Americans have access to a stable, growth-oriented financial future, it must embrace Bitcoin wholeheartedly. In doing so, the nation can secure its position as a global Bitcoin superpower – uplifting our citizens, strengthening our economic base, and protecting our strategic interests in the 21st century digital economy.
America, chart the 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 artistic creativity. Eliminating the capital gains tax on Bitcoin would signal to investors, entrepreneurs, and ordinary citizens that America is serious about leading the digital economy in the 21st century. It’s not just about being “Bitcoin friendly”; It’s about ensuring ordinary Americans have the tools they need to navigate turbulent economic waters.
The complexity and inefficiency of taxing every digital transaction puts an unnecessary burden on innovation and everyday life. Americans deserve better than that. They deserve the freedom to transact in a digital world without punitive oversight.
In essence, this is America’s opportunity to do what it has always done best: innovate, adapt, and lead. Removing capital gains taxes on Bitcoin would not only fulfill a campaign promise; It would pave the way for long-term prosperity, empower citizens to secure their financial future, and solidify the United States’ position as the world’s premier Bitcoin champion. Indeed, a rising tide lifts all boats — and what better ship to board than the Bitcoin Ark, led by a visionary administration bent on making America truly great again?
This article is a takes. The opinions expressed are entirely those of the author and do not necessarily reflect the opinions of BTC Inc or Bitcoin Magazine.