Bitcoin, Capital Gains, and the Fiat Prison We Call the West
“First they ignore you, then they tax you, then they cage you".
The State Sees Bitcoin as a Threat, So It Treats It Like a Casino Chip
Let’s cut through the propaganda.
Bitcoin was designed to be money. A global, permissionless, decentralized form of money that operates outside the control of governments, central banks, and unelected monetary overlords.
But what does the Western world see when it looks at Bitcoin?
Not money. Not freedom. Not innovation.
They see a speculative asset, one that can be taxed, regulated, and tracked. And most importantly, one that can be used to plug the fiscal holes their bankrupt systems keep digging.
So instead of embracing Bitcoin as a currency, the West slaps it with capital gains tax, just like you’d do with a stock, a yacht, or a rare painting. The system cannot conceive of money it does not control.
Capital Gains Tax: The Fiat System’s Leash Around Your Neck
Every time you spend Bitcoin, whether you’re buying coffee, paying rent, or moving across exchanges, you trigger a taxable event in most Western countries.
Own Bitcoin in the US, UK, Canada, or EU? Congratulations. The moment it appreciates and you touch it, the state demands a cut.
UK: Up to 20% CGT on Bitcoin sales.
US: Up to 37% if you’re short-term, plus state tax.
Canada: 50% of your crypto gains taxed at your marginal rate.
Germany: Tax-free only if held for 1+ year, unless you use it commercially.
Australia: Every transaction? Taxable. Dystopia wrapped in sunshine.
Bitcoin is treated like a speculative gamble, not what it truly is: a monetary revolution.
And that’s not an accident.
A Tale of Two Worlds: Who Gets It Right?
Now look to the East. Or better yet, look away from the West entirely.
Countries that don’t tax Bitcoin as capital gains:
El Salvador: Legal tender.
United Arab Emirates: No capital gains tax. Crypto-friendly zones.
Singapore: No capital gains tax.
Portugal: No tax on individual crypto gains.
Malaysia: Crypto gains are not taxed unless you're a trader.
Puerto Rico (US territory), 0% CGT if Act 60 resident.
These countries aren’t “crypto havens”, they’re early adopters of monetary neutrality.
They understand that Bitcoin is not a stock. It’s money.
The West? Still stuck in fiat Stockholm Syndrome.
You Don’t Need a Fancy Strategy, You Need a Passport
Here’s the reality no wealth manager will tell you:
If you live in a Western country, and you sell Bitcoin there, you’re donating your sovereignty to the machine.
So what do you do?
You stack sats. You DCA. You never sell.
You don’t trade. You don’t get clever. You quietly accumulate Bitcoin, a few hundred a month, whatever you can afford, and hold.
Then, when you're ready to “cash out” or start spending…
You leave.
You move to a jurisdiction that respects privacy, property, and monetary autonomy. Then and only then do you sell. Or maybe, you never sell at all. You borrow against it, collateralize it, or spend it directly in a parallel Bitcoin economy.
That’s how you escape the fiat prison, not just financially, but mentally.
Final Thoughts: You Are the Exit Liquidity, Unless You Become the Exit
The Western state sees Bitcoin as a gold mine, not because it believes in it, but because you do.
They want to tax you, not help you.
They want to track you, not free you.
They want your exit, but only to fund their survival.
The good news?
You don't owe them anything.
You don’t need permission to move capital across borders.
You don’t need to ask to leave the system.
All you need is Bitcoin, time, and a plan.
This isn’t just financial advice.
This is existential advice.
Stack sats. Stay private. Change jurisdictions. And when the time comes, disappear.