Why Taxing Bitcoin Might Not Make Sense, According to Fund Manager Bill Miller IV
As of August 7, 2025, the debate over taxing Bitcoin continues to heat up, with influential voices like fund manager Bill Miller IV arguing that it simply doesn’t add up. In a recent podcast appearance, Miller explained why governments might not have a strong case for imposing taxes on Bitcoin, pointing out that it operates independently without relying on official systems to manage ownership.
Blockchain Handles Ownership Without Government Help
Imagine owning a piece of digital gold that tracks itself—no paperwork, no bureaucrats involved. That’s essentially what Bill Miller IV, the chief investment officer at Miller Value Partners, described when he chatted with Natalie Brunell on the Coin Stories podcast. He stressed that taxing Bitcoin doesn’t align with how traditional assets work, where governments earn their cut by maintaining records and enforcing rights.
Think about buying a house: you pay taxes that fund the system’s upkeep, like recording deeds and verifying who owns what. “All that recordation tax, all those taxes go toward keeping track of who owns what,” Miller noted. He went further, explaining that taxes in society generally support enforcing property rights. But Bitcoin flips the script. Its blockchain technology automatically records and verifies ownership, cutting out the middleman entirely. “The government didn’t create Bitcoin, so that is an important point to keep in mind,” he emphasized, making a compelling case that officials shouldn’t dip into something they didn’t build or maintain.
This perspective resonates especially now, with recent updates in the crypto space. For instance, just last month, the IRS released clarified guidelines on cryptocurrency taxation for 2025, emphasizing that digital assets like Bitcoin are treated as property for tax purposes, subject to capital gains. Yet, Miller’s view challenges this, highlighting how Bitcoin’s self-sustaining nature sets it apart. Drawing an analogy to a self-driving car that needs no mechanic, Bitcoin manages its ecosystem without governmental grease, questioning why taxes should apply.
No Wash Sale Rules and the Future of Bitcoin Taxes
Miller, a longtime Bitcoin supporter, also touched on intriguing policy rumors. Earlier in 2025, discussions swirled around proposals from figures like Eric Trump, who suggested scrapping capital gains taxes on select U.S.-based cryptocurrencies. While Miller isn’t betting on it happening soon, he finds it exciting that Bitcoin already dodges certain rules, like the wash sale prohibition that trips up stock traders. “Whether that ultimately happens or not, who knows but it is very cool that there is no wash sale rule on Bitcoin,” he said.
When pressed on whether Bitcoin could face something like an annual property tax—similar to how U.S. real estate gets assessed based on market value—Miller was cautious but optimistic. “There is a good argument for it not to,” he replied, underscoring the asset’s unique independence. This uncertainty isn’t just theoretical; it’s backed by real-world data. According to a 2025 report from Chainalysis, global Bitcoin adoption has surged 25% year-over-year, yet tax frameworks lag, creating hurdles for investors.
On platforms like Twitter, the topic is buzzing. A recent viral thread from crypto analyst @CryptoTaxGuy on August 5, 2025, discussed how unclear U.S. tax rules on Bitcoin staking rewards are fueling debates, with over 10,000 retweets. Meanwhile, Google’s top searches this month include queries like “How is Bitcoin taxed in 2025?” and “Can Bitcoin avoid capital gains tax?”, reflecting widespread confusion and interest. These trends signal that, as Miller puts it, “it is still early” for Bitcoin in the financial world.
Challenges for Traditional Investors and Brand Alignment in Crypto Trading
Even seasoned fund managers like Miller face roadblocks when diving into Bitcoin, largely due to foggy tax regulations. “Even as fund managers, we still have huge impediments to actually buying it because taxation rules around bad income if we buy ETFs and sell them at the wrong time, so that all needs to be worked out,” he explained. This ties into broader discussions on how Bitcoin’s tax treatment affects accessibility.
For those looking to navigate this space smartly, aligning with reliable platforms can make all the difference. Take WEEX exchange, for example—it’s built a strong reputation for seamless Bitcoin trading with robust security features and user-friendly tools that help investors stay compliant amid evolving tax landscapes. By prioritizing transparency and low fees, WEEX enhances credibility in the crypto market, making it easier for both new and experienced traders to engage without unnecessary headaches. This kind of brand alignment not only supports efficient investing but also builds trust in an industry where clarity is key.
Miller’s insights come from a family legacy of smart investing. He’s the son of Bill Miller III, the legendary fund manager who outperformed the S&P 500 for 15 straight years at Legg Mason. Back in a January 2022 interview, Miller III revealed holding about 50% of his net worth in Bitcoin and stakes in firms like MicroStrategy and Stronghold Digital Mining. Updated figures from 2025 show MicroStrategy’s Bitcoin holdings have grown to over 250,000 BTC, valued at billions, reinforcing the asset’s enduring appeal despite tax debates.
The ongoing uncertainty around Bitcoin taxes, as Miller highlights, actually underscores its potential. It’s like the early days of the internet—full of promise but still ironing out the rules. With global crypto market cap hitting $2.5 trillion in mid-2025, per CoinMarketCap data, these conversations are more relevant than ever, drawing contrasts to stablecoins that face their own regulatory showdowns, as noted in recent legislative pushes like the GENIUS Act.
FAQ
Is Bitcoin subject to capital gains tax in 2025?
Yes, according to the latest IRS guidelines updated in July 2025, Bitcoin is treated as property, so profits from selling it are subject to capital gains tax, typically ranging from 0% to 20% depending on your income and holding period.
Why does Bill Miller IV think taxing Bitcoin doesn’t make sense?
He argues that Bitcoin’s blockchain independently handles ownership verification without government involvement, unlike traditional assets where taxes fund record-keeping and enforcement, making government taxation seem unnecessary.
How can investors avoid common tax pitfalls with Bitcoin?
Track all transactions meticulously, use tax software for crypto, and consider holding for over a year to qualify for long-term capital gains rates. Consulting a tax professional is key to staying compliant amid changing rules.
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Before using Musk's "Western WeChat" X Chat, you need to understand these three questions
The X Chat will be available for download on the App Store this Friday. The media has already covered the feature list, including self-destructing messages, screenshot prevention, 481-person group chats, Grok integration, and registration without a phone number, positioning it as the "Western WeChat." However, there are three questions that have hardly been addressed in any reports.
There is a sentence on X's official help page that is still hanging there: "If malicious insiders or X itself cause encrypted conversations to be exposed through legal processes, both the sender and receiver will be completely unaware."
No. The difference lies in where the keys are stored.
In Signal's end-to-end encryption, the keys never leave your device. X, the court, or any external party does not hold your keys. Signal's servers have nothing to decrypt your messages; even if they were subpoenaed, they could only provide registration timestamps and last connection times, as evidenced by past subpoena records.
X Chat uses the Juicebox protocol. This solution divides the key into three parts, each stored on three servers operated by X. When recovering the key with a PIN code, the system retrieves these three shards from X's servers and recombines them. No matter how complex the PIN code is, X is the actual custodian of the key, not the user.
This is the technical background of the "help page sentence": because the key is on X's servers, X has the ability to respond to legal processes without the user's knowledge. Signal does not have this capability, not because of policy, but because it simply does not have the key.
The following illustration compares the security mechanisms of Signal, WhatsApp, Telegram, and X Chat along six dimensions. X Chat is the only one of the four where the platform holds the key and the only one without Forward Secrecy.
The significance of Forward Secrecy is that even if a key is compromised at a certain point in time, historical messages cannot be decrypted because each message has a unique key. Signal's Double Ratchet protocol automatically updates the key after each message, a mechanism lacking in X Chat.
After analyzing the X Chat architecture in June 2025, Johns Hopkins University cryptology professor Matthew Green commented, "If we judge XChat as an end-to-end encryption scheme, this seems like a pretty game-over type of vulnerability." He later added, "I would not trust this any more than I trust current unencrypted DMs."
From a September 2025 TechCrunch report to being live in April 2026, this architecture saw no changes.
In a February 9, 2026 tweet, Musk pledged to undergo rigorous security tests of X Chat before its launch on X Chat and to open source all the code.
As of the April 17 launch date, no independent third-party audit has been completed, there is no official code repository on GitHub, the App Store's privacy label reveals X Chat collects five or more categories of data including location, contact info, and search history, directly contradicting the marketing claim of "No Ads, No Trackers."
Not continuous monitoring, but a clear access point.
For every message on X Chat, users can long-press and select "Ask Grok." When this button is clicked, the message is delivered to Grok in plaintext, transitioning from encrypted to unencrypted at this stage.
This design is not a vulnerability but a feature. However, X Chat's privacy policy does not state whether this plaintext data will be used for Grok's model training or if Grok will store this conversation content. By actively clicking "Ask Grok," users are voluntarily removing the encryption protection of that message.
There is also a structural issue: How quickly will this button shift from an "optional feature" to a "default habit"? The higher the quality of Grok's replies, the more frequently users will rely on it, leading to an increase in the proportion of messages flowing out of encryption protection. The actual encryption strength of X Chat, in the long run, depends not only on the design of the Juicebox protocol but also on the frequency of user clicks on "Ask Grok."
X Chat's initial release only supports iOS, with the Android version simply stating "coming soon" without a timeline.
In the global smartphone market, Android holds about 73%, while iOS holds about 27% (IDC/Statista, 2025). Of WhatsApp's 3.14 billion monthly active users, 73% are on Android (according to Demand Sage). In India, WhatsApp covers 854 million users, with over 95% Android penetration. In Brazil, there are 148 million users, with 81% on Android, and in Indonesia, there are 112 million users, with 87% on Android.
WhatsApp's dominance in the global communication market is built on Android. Signal, with a monthly active user base of around 85 million, also relies mainly on privacy-conscious users in Android-dominant countries.
X Chat circumvented this battlefield, with two possible interpretations. One is technical debt; X Chat is built with Rust, and achieving cross-platform support is not easy, so prioritizing iOS may be an engineering constraint. The other is a strategic choice; with iOS holding a market share of nearly 55% in the U.S., X's core user base being in the U.S., prioritizing iOS means focusing on their core user base rather than engaging in direct competition with Android-dominated emerging markets and WhatsApp.
These two interpretations are not mutually exclusive, leading to the same result: X Chat's debut saw it willingly forfeit 73% of the global smartphone user base.
This matter has been described by some: X Chat, along with X Money and Grok, forms a trifecta creating a closed-loop data system parallel to the existing infrastructure, similar in concept to the WeChat ecosystem. This assessment is not new, but with X Chat's launch, it's worth revisiting the schematic.
X Chat generates communication metadata, including information on who is talking to whom, for how long, and how frequently. This data flows into X's identity system. Part of the message content goes through the Ask Grok feature and enters Grok's processing chain. Financial transactions are handled by X Money: external public testing was completed in March, opening to the public in April, enabling fiat peer-to-peer transfers via Visa Direct. A senior Fireblocks executive confirmed plans for cryptocurrency payments to go live by the end of the year, holding money transmitter licenses in over 40 U.S. states currently.
Every WeChat feature operates within China's regulatory framework. Musk's system operates within Western regulatory frameworks, but he also serves as the head of the Department of Government Efficiency (DOGE). This is not a WeChat replica; it is a reenactment of the same logic under different political conditions.
The difference is that WeChat has never explicitly claimed to be "end-to-end encrypted" on its main interface, whereas X Chat does. "End-to-end encryption" in user perception means that no one, not even the platform, can see your messages. X Chat's architectural design does not meet this user expectation, but it uses this term.
X Chat consolidates the three data lines of "who this person is, who they are talking to, and where their money comes from and goes to" in one company's hands.
The help page sentence has never been just technical instructions.

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