The debate on the true meaning of sovereignty and freedom has increased considerably in recent years. The pursuit of individuality in a world clouded by identification has softened the headlines, focusing on the growing trend of digital currencies.
With the evolution of blockchain technology, exponentially, people have joined the cause and invested in different types of digital currencies.
Digital currencies and Citizenship
While the rising values of major Digital currencies such as Bitcoin or Ethereum have undoubtedly played an important role in attracting a vast number of investors, the uniqueness and enthusiasm for cryptocurrencies remain their main attraction.
But there is another factor that makes cryptocurrency a desirable asset, the financial independence it brings. Cryptocurrency is truly decentralized, allowing its owner to roam freely on physical freedom; Citizenship through investments.
Where Cryptocurrency & Citizenship by Investment intersect
The intersection of all cryptocurrencies and citizenship through investment is obvious: freedom. The beauty of it, however, is that the two themes elegantly fit together and complement each other for even greater potential. The cryptocurrency itself can also come in the form of government bonds or specific regulations. For example, in the United States, cryptocurrency investors will find it difficult to manage their crypto assets. Americans are notoriously barred from certain new coin offerings, but the US Internal Revenue Service. is just the beginning.
Let’s say a crypto capitalist sells a bitcoin that costs $68,000. A staggering $58,000 of that total would be subject to capital gains tax. However, there is more.
The Biden administration is currently enacting tax reform that will increase the capital gains tax from 20% to 39.6%. This reform could destabilize, if not destroy, a cryptocurrency investor’s profit margin.