Tax. And consequences. In 1965 the Labour (what a surprise) Government introduced Captial Gains tax but exempted tax on your principal residence. The result has been a huge leveraged drive by the public into property, resulting in unaffordable housing and a bloated banking sector. Classic unintended consequences. In some European jurisdictions Bitcoin gains are not taxed beyond certain time thresholds and in other countries there is little or tax. What is the result? Huge Bitcoin adoption relative to the high tax states. How will this play out? It’s hard to be sure, but one can imagine capital and people will gyrate to the low tax states and the high tax states will be stripped of both over time. Not good for them. We moan a lot about inflation but tax rates are more onerous in general and will play a massive role in sorting winners from losers over the next decades as both capital and people are able to move so much more readily than in previous centuries.

Why is listening to politicians so painful, especially on the BBC. The refusal to answer simple questions and the diatribes on their own successes screech. Modi’s interview with Lex Fridman was illuminating, he came across as interested in service in a way that was very refreshing. But for Bitcoiners India presents a problem. It’s that one word that stops Bitcoin dead as money: Tax. It’s that three letter word we need to discuss.

Great pod from Lex with the very impressive N Modi

Apple Podcasts

#460 – Narendra Modi: Prime Minister of India – Power, Democracy, War & Peace

Podcast Episode · Lex Fridman Podcast · 16/03/2025 · 3h 26m

The primeval attacks on Tesla are protectionist at best, no surprises that those under threat should retaliate, that they have done so openly and with violence is worrisome. Luddites rarely win, so this will be painful for all and ultimately wasteful. So it is with Chokepoint 2.0, the fight to prevent digital assets and payment systems disrupting the bloated and antiquated banking system. It too will fail. Darwinism isn’t something abstract pertaining to living organisms, it applies to systems and technology. It would also be wonderful if it applied to political systems more, so that as societies build more efficient and prosperous political systems they could be copied and iterated on. It just doesn’t happen fast enough, because the best are bottom up, and those are slow by nature compared to top down diktats. Tesla, Bitcoin, Argentina offer hope to those who embrace change with all the risks that fear that change brings, it would be so good if education could include embracing this concept.