Bill Miller IV: Bitcoin Taxation Makes No Sense

Bitcoin Taxation Questioned by Fund Manager Bill Miller IV

Bill Miller IV, CIO at Miller Value Partners, argues that taxing Bitcoin “doesn’t make a ton of sense” since it requires no government support to verify ownership.

Speaking on the Coin Stories podcast with Natalie Brunell, Miller claimed that Bitcoin’s ownership system is managed by the blockchain, not by government agencies. Therefore, he says, governments have no right to impose taxes on it.

Blockchain Handles Ownership — Not the Government

Miller compared Bitcoin to real estate, where taxes fund the infrastructure needed to verify property rights. In contrast, Bitcoin does this autonomously via blockchain technology.

“When you buy or sell a house, taxes go toward keeping track of ownership,” he said. “But Bitcoin automates that entire process.”

He also highlighted a key difference: “The government didn’t create Bitcoin — so why should it benefit from it?”

Could Bitcoin Avoid Capital Gains or Property Taxes?

Earlier this year, rumors suggested Eric Trump had proposed removing capital gains taxes on certain U.S.-based cryptocurrencies. While that idea hasn’t become policy, Miller commented: “It’s very cool that there is no wash sale rule on Bitcoin.”

Asked whether Bitcoin might ever be subject to annual property taxes, he said, “There’s a good argument against it,” although he admitted the future is uncertain.

Tax Ambiguity Proves It’s Still Early for Bitcoin

Miller also pointed out that many traditional fund managers struggle to invest in Bitcoin due to tax uncertainty.

“There are still huge impediments,” he explained. “For example, bad income rules can make ETF trading risky if done at the wrong time.”

He concluded, “That’s why I keep saying we’re early. The taxation rules are still being figured out.”

Who Is Bill Miller IV?

Bill Miller IV is the son of Bill Miller III, a legendary investor known for outperforming the S&P 500 for 15 consecutive years. In a 2022 interview, Miller III revealed he held 50% of his net worth in Bitcoin and crypto firms like MicroStrategy and Stronghold Digital Mining.