Kind've illogical otherwise, but I agree with your general assessment. Governments will always try to get their mitts on things which they rightfully have less than zero right to get, as I pointed out with gold investments since 1971. They double-fucked everyone.
My point is just that for the average person, it's a bit preposterous to chage people capital gains taxes if they bought bitcoin for usage, but don't use it for a decade or so, if paying for goods and services with the bitcoin. Obviously, if the person sells the bitcoin for dollars and then buys something, capital gains are owed. But here's another example to frame what I mean, specifically.
March 2020, you realize home heating oil is an insane bargain compared to the history of oil prices your entire life. So you not only buy a batch of heating oil, but you furthermore buy 3 more tanks to put in the ground to store heating oil for the next 3 winters. You buy at let's say $10 per barrel.
2 years later, the $10 heating oil is sitting in your tank, and you burn it for heat, but heating oil price is now $100 per barrel. The government is going to ask you to pay capital gains on $90 of profits you made by investing in heating oil at the bottom??
I agree with you, they will TRY to do this, I'm sure of it, particularly with no revolution or civil war between here and then. However, it's just as senseless to charge someone taxes of $900 because they bought someting for 1 BSV, that they bought for $100, because you bought a $1,000 wool suit at the store, paying 1 BSV.
You walk into store, the guy says, this suit you want is 1 BSV. 1 BSV trades for $1,000. You give him 1 BSV that you bought in 2023 for $100. You get the suit, of course, and then you report your capital gain to the government and pay the government $450 because you bought a suit with the commodity you bought 10 years ago?
This is also why bitcoin should've never been marketed as "electronic cash". It should have been marketed as commoditized computation. You buy bitcoin, that's the end of it. Everyone in the world would assume you bought it because you wanted computation, not a forex trade. The fact that CompuBits (commoditized computation) you "bartered" to buy $1,000 worth of video game time at Gamestop in 2033, no government would be up your ass to pay capital gains on a forex trade, bc you simply bought computation early and it happened to go up in price.
You buy a painting for $1,000. 10 years later it's worth $1mm. You donate the painting to an art gallery which then gives you $1mm worth of special priviledges at their art studios, perhaps including portraits done by Bansky of your likeness which might then immediately be worth $5mm if you sold them a year later. it can get complicated.
Taxes are mostly voluntary and based on prior art. But something like this, where you buy BSV and then buy something with the BSV that's traditionally a more expensive service you wouldn't have afforded 10 years ago at the dollar price of BSV, that's not really going to be in tax practises yet. Maybe it is, I dunno.
but again, if it is, it's illogical.
Another way: you buy $1,000 worth of dollars, and next year a President decides to make the USDollar deflationary. In 10 years the $1,000 of 2023 money becomes equivalent to $100,000 in 2023 purchasing power. You owe nothing, you simply held dollars.
What if you buy things with the appreciated (vs the dollar) BSV in 10 years that previously didn't have a market in 2023, such as game passes or virtual experiences. How can you value the capital gain? ESTIMATE what the new produce WOULD have cost in 2023 had it existed?
We're in the taxation twighlight zone here.