Blockchain Handles Ownership — Not the Government, Says Bill Miller IV
Bill Miller IV, Chief Investment Officer at Miller Value Partners, has questioned the logic behind taxing Bitcoin (BTC), arguing that traditional tax structures don’t apply to an asset that doesn’t rely on government infrastructure. Speaking on the Coin Stories podcast, Miller explained that taxing Bitcoin may not be justified, as blockchain technology already automates property verification.
“The government didn’t create Bitcoin… the blockchain does that property automation for itself,” Miller stated.
Bitcoin Property Rights Are Self-Enforcing
According to Miller, traditional taxes—such as real estate transfer or recordation taxes—exist to fund the systems that track ownership and enforce property rights. However, Bitcoin doesn’t require such infrastructure. Ownership is secured by cryptographic keys and verified by the blockchain itself, eliminating the need for public services.
“You pay taxes to enforce property rights… Bitcoin doesn’t need that,” he added.
This perspective raises an important policy question: Should governments tax assets they don’t support or maintain?
Capital Gains and the “Wash Sale” Loophole
Miller also addressed the capital gains tax issue, suggesting there’s a compelling case for exempting Bitcoin under certain conditions. While no formal proposals have passed, rumors involving Eric Trump earlier this year hinted at a potential tax exemption for some U.S.-based cryptocurrencies.
He also highlighted a little-known tax detail: Bitcoin currently does not fall under the wash sale rule, allowing investors to harvest losses more flexibly than with stocks or ETFs.
Bitcoin Tax Rules Still a Work in Progress
While Bitcoin’s design makes a strong case for less taxation, Miller acknowledged the regulatory and compliance uncertainties that still challenge both retail and institutional investors.
“We still have huge impediments to actually buying it because taxation rules are unclear… That’s why I say it’s still early,” he concluded.
Property Tax on Bitcoin? Unlikely, Says Miller
When asked about the possibility of Bitcoin facing annual property taxes—like real estate—Miller was skeptical. He argued there’s a reasonable case against taxing an asset that operates independently of state systems.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss