Governments have no right to tax Bitcoin because managing ownership rights requires no administrative efforts, says Miller Value Partners chief investment officer Bill Miller IV.
“For them to reach their hand in there doesn’t make a ton of sense,” Miller told Natalie Brunell on the Coin Stories podcast on Wednesday.
Blockchain records ownership, not the government
Miller, known for his early Bitcoin (BTC) advocacy, said Bitcoin doesn’t rely on government infrastructure to verify or enforce property rights, unlike traditional assets such as real estate.
“When you buy or sell a house, all that recordation tax, all those taxes go toward keeping track of who owns what,” Miller said.
“The reality is if you think about why you pay taxes in society, it is to enforce property rights,” he added.
Miller said this is not necessary with Bitcoin. “The government didn’t create Bitcoin, so that is an important point to keep in mind,” he said, adding:
“The blockchain does that property automation for itself, right?”
Earlier this year, rumors circulated that US President Donald Trump’s son, Eric Trump, proposed eliminating capital gains taxes on certain US-based cryptocurrencies. Regarding the possibility of Bitcoin being exempt from capital gains tax, Miller said, “Whether that ultimately happens or not, who knows but it is very cool that there is no wash sale rule on Bitcoin.”
When asked if he sees Bitcoin ever having a property tax, similar to how properties are taxed in the US annually based on the market value, he says he isn’t sure, but “there is a good argument for it not to.”
Bitcoin tax uncertainty signals “it is still early”
Meanwhile, Miller said traditional asset managers still face hurdles when buying Bitcoin, primarily because of uncertainty around taxation.
“Even as fund managers, we still have huge impediments to actually buying it because taxation rules around bad income if we buy ETFs and sell them at the wrong time, so that all needs to be worked out,” he said.
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“That’s why I continue to say it is still early because the taxation rules around it are really interesting,” he added.
Bill Miller IV is the son of legendary investor Bill Miller III, a fund manager known for beating the S&P 500 for 15 consecutive years at investment giant Legg Mason.
In a January 2022 interview, Miller III said he holds 50% of his net worth in Bitcoin and related investments in major industry firms like Michael Saylor’s Strategy and BTC mining firm Stronghold Digital Mining.
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