In a world where digital assets are quickly becoming a cornerstone of global finance, the United States is at a crossroads. The Trump administration has repeatedly said it is committed to making everyday Americans more prosperous. From pledging to restore economic strength on the campaign trail to appointing forward-thinking advisers, the White House appears poised to usher in a new era of financial freedom. But if President Trump truly wants to accelerate wealth creation for the average citizen and establish the U.S. as a global leader,Bitcoin superpower“—his government must pursue a bold, transformative policy: eliminate the capital gains tax on Bitcoin.
The 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 income tax – provided they are held for more than three years and meet certain income thresholds. This is not an isolated case. 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 taxation of Bitcoin can help promote 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 it is rising fast.” In a sea full of global liquidity and debt, America’s economic ship must navigate these digital currents. The political decisions of these countries – and the increasing prosperity of their citizens – send a strong signal: the US can and should use Bitcoin as a growth tool and not burden it with outdated tax models.
Trump’s own words: A path to prosperity
President Trump himself has signaled his willingness to reconsider Bitcoin taxation. “They have taxes paid on cryptocurrencies and I don’t think that’s right.he said in a recent interview, reflecting the frustration of millions of Americans who find it absurd 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 buy a coffee with it?he asked rhetorically, emphasizing how current laws hinder everyday transactions. He added: “Maybe we will eliminate taxes on cryptocurrencies and replace them with tariffs.”
This sentiment is not just rhetorical flourish. Trump, who spoke at the Bitcoin 2024 conference in Nashvilleproclaimed his vision to make America the “world leader.”Bitcoin superpower.“He also committed to “Make Bitcoin in America,“Making the U.S. a leading center for Bitcoin innovation.” Additionally, on December 5, he appointed former PayPal Chief Operating Officer David Sacks as his “White House AI and Crypto Czar” – a move which is widely seen as a step towards implementing forward-looking crypto policies.
The BITCOIN Act of 2024: A Strategic Reserve for the People
The US has already taken monumental steps in this direction. The BITCOIN Act of 2024 requires all Bitcoin held by a federal agency to be transferred to the Treasury Department for storage in a Strategic Bitcoin Reserve. Over five years, the Treasury Department must purchase one million bitcoins and hold them in trust for the United States. This government-level accumulation demonstrates a long-term vision for incorporating 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 policy and personal wealth. Since the federal government invests and holds Bitcoin, private individuals could do the same without facing criminal tax liabilities.
Serving everyday Americans
For average Americans, the cost of living and painful inflation were key issues in President Trump’s re-election campaign. Traditional strategies – interest rate manipulation, quantitative easing – often amount to rearranging the deck chairs on a sinking ship when faced with truly systemic economic challenges. Bitcoin offers a life raft – dare we say it, a digital Noah’s Ark – to Americans seeking to preserve and grow their wealth against the erosive forces of inflation. Eliminating capital gains taxes on Bitcoin would allow citizens to trade, invest, and save in a stable, finite asset without incurring federal taxes on each additional gain.
The ripple effect here is clear: More people using Bitcoin as a store of value and medium of exchange means stronger demand, which could further strengthen the U.S. Treasury’s strategic holdings. It’s a virtuous circle, a positive feedback loop. As the value of Bitcoin rises, the country’s asset base also grows – helping pay down the national debt, strengthening the dollar’s hegemony in global trade, and actually making Americans richer and more secure.
Why America needs Bitcoin
Bitcoin is no longer a niche experiment reserved for a small group of enthusiasts. It has become a mainstream, urgent priority for everyday Americans — especially the rising generation who will shape our country’s future economy. This is not an ideological appeal; It’s a practical, data-driven reality. According to the Stand with the Crypto AllianceAccording to a nonprofit organization that advocates for transparent blockchain policies, more than 52 million Americans now own some form of cryptocurrency. Nearly nine in 10 Americans believe the financial system needs to be modernized, and 45% say they would not support candidates who stand in the way of crypto 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 crypto. This cuts through the usual tribal politics and points to a fundamental truth: Bitcoin is now a topic of discussion in national politics and not a side note on a fringe agenda.
The call for America to take the lead is clear. 53% of Americans want crypto companies to be based in the US to ensure that technological innovations and the wealth they create remain on home soil. Among Fortune 500 executives, 73% prefer U.S.-based partners for their crypto and Web3 initiatives, signaling companies’ desire to keep America at the forefront of global financial advancement.
If you don’t act now, you risk repeating past mistakes. America was once the world leader in advanced manufacturing, but today 92% of the most sophisticated semiconductor production is in Taiwan and South Korea. We cannot afford to leave the future financial landscape to other regions. Bitcoin is not just another asset class; It is the digital backbone of a rapidly evolving monetary system. If the U.S. wants to maintain its economic hegemony, maintain its leadership in innovation, and ensure that everyday Americans have access to a stable, growth-oriented financial future, it must fully embrace Bitcoin. In this way, the country can secure its place as a global Bitcoin superpower – uplifting our citizens, strengthening our economic base, and safeguarding our strategic interests in the 21st century digital economy.
America sets the course
By following global best practices and implementing forward-thinking policies, the United States can position itself as a role model for financial freedom and technological innovation. Eliminating the capital gains tax on Bitcoin would signal to investors, entrepreneurs, and everyday citizens that America is serious about being a leader in the 21st century digital economy. It’s not just about being “Bitcoin friendly”; It’s about ensuring that average Americans have the tools they need to navigate turbulent economic waters.
The complexity and inefficiency of taxing every digital transaction places an unnecessary burden on innovation and everyday life. Americans deserve better – they deserve the freedom to do business in a digital world without punitive oversight.
Essentially, this is America’s chance to do what it has always done best: innovate, adapt and lead. Eliminating the capital gains tax on Bitcoin would not only fulfill a campaign promise; It would create the conditions for long-term prosperity, empower citizens to secure their financial futures, and cement the United States as the world’s leading Bitcoin champion. A rising tide indeed lifts all boats – and what better ship to board than a Bitcoin ark, steered by a visionary government determined to truly make America great again?
This article is a Take. The opinions expressed are solely those of the author and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.
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