Every country is going to remove tax on bitcoin transactions, they wont have a choice.

I recently saw Michael Saylor talk about how the bitcoin entering the spot ETFs is being custodied in the country that operates the ETF. If a country does not have a spot ETF the potential bitcoin investment in that country leaves and moves to the country that has the spot ETFs. So if a country wants to keep its citizens bitcoin inside their borders they will have no choice but to allow their own spot ETF.

The same phenomenon is true of taxation of bitcoin.

We see countries that have no CGT by default and they are fantastic places to live as a bitcoiner because there is no need to record all of your transactions for the tax authority because there is no CGT owed when you spend your bitcoin. These are places like the UAE, Switzerland, Singapore etc. We also see countries like El Salvador and now Argentina that have specifically removed all tax reporting obligations on bitcoin so their residents can live in peace using bitcoin without having to keep transaction records and pay CGT on every transaction.

People who hold the most bitcoin are moving in droves to these countries so they can live a better life and use bitcoin easily as money. We know that by its nature bitcoin goes wherever the seed holder goes, this means bitcoin is leaving the countries that tax it and is moving to the countries that dont tax it.

In 10 short years from now a significantly large percentage of all the bitcoin that exists will reside in countries that dont tax it. Meaning the countries that do tax it will have little to no bitcoin within their borders.

If a country wants to keep bitcoin inside its borders the only option is to not tax it. For this reason, just like is the case with the spot bitcoin ETFs, every country is going to have to specifically state there is no tax on bitcoin or see their country end up with no bitcoin within their borders.

Think back to the year 1850, the wealthiest countries had all of the gold within their borders, if a countries residents had no gold it was a poor country. The same will be true of bitcoin. If your countries tax regime has forced all of your bitcoin holders to leave and move to a country that doesnt tax bitcoin then your country will be considered poor.

The countries that do not tax bitcoin today and that want bitcoiners to move there and bring their bitcoin with them will become the wealthiest countries on earth. The countries that tax bitcoin every time it is used and force their bitcoin holders to leave just to be able to use their money in peace will become the poorest countries on earth.