Episode-019- Miyagi Mornings Weekly Recap — 2 Comments

    • Crypto tax wise is like any asset, you pay tax when you receive it on its value, if you buy it you pay nothing. When you trade, sell or spend it you pay tax on any gain or deduct any loss.

      Of course as we get into real ETFs you can stack those in say ROTH IRAs.

      The other long plays are going to be…

      1. Loaning your BTC in a fully collateralized (cant loose) smart contract loan. This will be like renting a house with immediate automatic eviction if non payment occurs and zero maintenance. Also no property taxes. BTC can go up forever and you never pay tax on it unless you sell it. In this model you’d pay “interest and dividend tax” only on the cash flow.

      2. Borrowing in the same type of loan. A person with say 5 million in BTC could likely do this and borrow 150-200K a year for well, almost ever if BTC say levels at about a sustained 10% deflation rate at some point in maturity. In this model you’d pay no taxes ever, a loan is not income. You would likely die with about 40-50% of your value owed back, if you lived a very long time after “retirement”.

      It may even be smart to do both. On paper you could be an old man on SSI making a pension of say 70K, which will be like say 45-50 now, no tax implications in retirement, but you are boosting that by an additional tax free 100-200K or more.

      BTC is hard and long money, the hardest money man has ever come up with. We have to think differently about it.