Capital Gains Changes, bullish BTC signal.

Heres my current thoughts on recently proposed capital gains tax increases as it relates to BTC.

As many of you may know, Canada and now even Democrat lawmakers, along with other countries, are looking to raise capital gains taxes. This, I will argue, is a bullish BTC signal for the following reasons:

1) These guys are not dumb. They know exactly what they are doing. Typically, you want low capx taxes to encourage market investments. However, during times with high monetary debasement, hard asset inflation "perform" very well as they have baseline value accretion equal to growth in M2. Asset inflation is responsible for most current accretion during currency debasement (as opposed to consumer or commodity inflation, which has supply elasticity and is highly affected by productivity)

2) Voters only really care about consumer inflation. Higher taxes lever against CPI as it draws money out of the system, if you are already expecting high and asymmetrical productivity growth (advancements in AI, robotics, pharma, protein fermentation etc) then you become less concerned about stagnating productivity as we alredy locked in from existing tech advancements let alone expected advancements. This is because productivity growth directly lowers CPI (all else equal).

3) high productivity growth and high taxes will put downwards pressure on CPI giving these governments the room to do exactly what they intend to do, continue debating the currency to get us out of our self-created debt trap.

In summary, these guys are not dumb. Policies like this with coordinating media strategies don't come out of thin air. They know currency debasement is going to skyrocket again once supply shock overheating is over and productivity starts increasing as already created tech rolls out into corporate tools.

Bitcoin is the only solution that is both a hard asset AND a form of digital sovereignty directly able to protect your wealth from being devalued and taxed to death.

Note here: consider appropriate tax planning, as this occurs more and more of your saved and declared BTC will get taxed away through currency debasement and capital gains taxation. This is why the government doesn't need to hold BTC reserves when it's population invests in BTC products like the ETF and incur massive capital gains taxes when they eventually sell. They are gaining BTC exposure directly through this mechanism.