As per Bill Miller IV, the chief investment officer at Miller Value Partners, Bitcoin taxation is unsound. He made this statement on the Coin Stories podcast, hosted by Natalie Brunell. Miller is recognized for his early support of Bitcoin (BTC).
Miller argued that Bitcoin doesn’t demand government infrastructure to validate or enforce property rights. This sets it apart from conventional assets like real estate. “When you purchase or sell a property, all the recordation and related taxes are directed towards maintaining records of ownership,” explained Miller.
He further elaborated, “If you examine why society pays taxes, it’s primarily to enforce property rights.” He pointed out that this isn’t necessary with Bitcoin and added, “The government didn’t create Bitcoin, and that’s a crucial point to remember. The blockchain automates this property aspect for itself.”
Earlier this year, there were rumors that Eric Trump, son of former US President Donald Trump, suggested abolishing capital gains taxes on specific US-based cryptocurrencies. On the topic of Bitcoin potentially being exempt from capital gains tax, Miller commented, “Whether that ultimately transpires or not, it’s noteworthy that Bitcoin doesn’t have a wash sale rule.”
When asked about the possibility of a property tax on Bitcoin, similar to property taxes in the US, Miller mentioned that he wasn’t certain, but suggested there’s a strong case against it.
Miller also highlighted that traditional asset managers still confront challenges when purchasing Bitcoin, primarily due to tax uncertainties. He concluded, “I maintain that it’s still early days for Bitcoin, given the intriguing taxation rules surrounding it.”
Bill Miller IV is the son of renowned investor Bill Miller III, who is famous for outperforming the S&P 500 for 15 consecutive years at the investment behemoth Legg Mason. In an interview in January 2022, Miller III revealed that he holds 50% of his net worth in Bitcoin and related investments in leading industry companies like Michael Saylor’s Strategy and BTC mining firm Stronghold Digital Mining.
