Continuing my thinking out loud on 6102 confiscation. Wouldn’t it be easier for the government to ensure bitcoin moons? If the primary concern is to protect the dollar and the monopoly on money printing, then bitcoin as an asset is ok. It’s the peer to peer transaction feature that they would want to eliminate. Bitcoin moons. That should stop a lot of liquidity since who wants to spend something that is worth so much and continues to rise? It’s why nobody uses a 1900 $20 gold coin as currency. It’s worth $2600 as gold. Fidelity released a paper suggesting $1 billion per bitcoin by 2048. Sounded crazy but maybe they already thought thru what we are examining today. So fine, it’s $1 billion, or $10 per sat. Well, 1 sat would be the smallest transaction fee a miner or level two provider could accept. Consider my most recent lightning purchase cost 3 sats and I was thrilled at how cheap it was. But at $10 per sat, I’m not buying those three donuts using sats. And if I had to use multiple UTXOs? That may end up costing more than the item I purchased. So the government can eliminate any competition to the dollar by allowing bitcoin to moon and pressuring the exchanges and ETF firms to ensure the sat remained the lowest denomination of Bitcoin.

Completed my second purchase using lightning. Bought three donuts at a small business coffee shop. The first purchase was produce from a local farmer. Each time I had to pause and ask if it was really worth spending these sats when I know these sats will be able to buy so much more in the future. That’s probably the most exciting part of using real money. Significantly less consumption but probably a lot more happiness. With real money, life got cheaper every single year for 30 years during 1870-1900. We had real money and the industrial revolution was making its productivity gains. And everyone got to benefit. We’ve had two equivalent productivity revolutions with the PC and the internet in my lifetime. And life got more expensive every single year because fiat. So the productivity gains were taken away from the public and handed over to the shareholders of the winning companies. I expect that to continue with AI, robotics and quantum computing. But those technologies will permanently eliminate essential labor. So life continues to get more expensive, but essential labor dries up. How does this all get resolved? Save in bitcoin. At the moment that seems like the only way to survive what’s coming

Just me thinking out loud. Self custody KYC Bitcoin is no different than ETF Bitcoin when it comes to 6102 confiscation. If I were the government protecting the dollar and my monopoly on money printing, I would use the IRS as my first attack vector. I would be trying to separate the millions of normies from their Bitcoin. I know exactly who has KYC Bitcoin, how much they have and what they bought it for. I would make Dec 31 the taxable event day and say it is illegal to self custody or sell bitcoin. Your tax bill is 50% of the capital gains you made on bitcoin, due April 15. Then I really don’t care because I know most normies would have to sell a good chunk of their bitcoin to pay the tax bill. If I wanted even more success, I would offer a program for voluntarily giving your bitcoin to the government thru OTC. I would pay out the full market price of bitcoin, say $1 million per coin, plus match your capital gains. So if you bought bitcoin at $100k, your capital gain is $900k. I would pay you 1.9 million, and withhold $900k for taxes, letting you keep the full million market value. This wouldn’t primarily be to reward those who comply, but to create a tax bill for those who do not comply equal to the full capital gains. Because the tax value I would use would not be the $1 million market value, but the $1.9 million I would have paid you if you did comply. I’m going to calculate a $900k tax bill for you and send the IRS and threats of jail if you don’t pay up. So now you have to sell most of your bitcoin to pay the tax bill. Since that was illegal if you did it after Dec 31, you won’t be able to document how you came up with $900k. That allows me to tax that $900k as ordinary income in the next tax year, adding an additional 300k of taxes you owe.