After realizing that taking out a home loan meant the property was never his, the military member sold his house to buy bitcoins.
This is an opinion editorial by Mickey Koss, a West Point graduate with a degree in economics. He spent four years in the infantry before transferring to the Finance Corps.
I actually started this article almost a year ago and had abandoned it, until the idea was revived through Spaces Twitter with “Toxic Happy Hour.” When heard @publordhorl talking about a wealth tax there, the implication is a sudden slap in the face:
Wealth taxes and property taxes mean you never own anything. ever. Maybe that’s the point.
You Don’t Have It, You Just Don’t Know It
Back in 2018, my husband and I decided to use our VA home loan benefits to purchase a home at our new duty station. The house is in a good pocket of a low-income area, so the price allows us to rent the house after we leave to try to build wealth and cash flow.
Fast-forward two years: We’re met with the infamous black swan event, and I’m not talking about COVID-19. The event I am referring to is the eviction moratorium that was quickly implemented during that period.
Through luck and happenstance, our tenants stay in place and keep paying rent, but if they quit, it could be a financial disaster. The message is clear and the precedent is set: I no longer have a right to my property. We worked diligently to sell the house, finally it was downloaded through a deal on the market to another investor, and we used the proceeds to buy a good and glorious price of bitcoin in 2021.
Come For PGU, Stay For FGU
Like many in the military and the middle class, home ownership is an important part of building long-term wealth for me. For military people in particular, frequent moves make this difficult to do without choosing a rental property after you move.
I see the risk, however, has increased exponentially after what happened in 2020. I don’t think it’s a viable strategy anymore.
Furthermore, even if we have to pay for the property and own it directly, we still have to pay taxes every year, and what will prevent another rent moratorium from taking effect? Or worse, a wealth tax? I really think: Do we already have nothing and do not know yet?
It took me a while to figure this out, but bitcoin is the only thing I have. Discussions about wealth taxes and eating the rich have caused me to re-evaluate this lesson
It makes me think about Jeff Booth’s thesis above, that the system cannot be fixed from within. Bitcoin is attractive at first because of the rising price (PGU) sensation, but you inevitably hit the inflection point; will you panic sell at the first sign of danger, or will you dig deeper through proof of work and uncover the true value?
The true value of bitcoin is not reflected in daily price fluctuations; bitcoin’s value is reflected in its ability to empower individuals. Bitcoin in its own custody is the basis of freedom of movement (FGU) technology. Its seizure-resistant nature allows people to arbitrate jurisdictions, fleeing hostile territory without coercive taxes or fines. Level the playing field for individuals, a fact that will become more apparent in the coming years.
Freedom can only exist in a country where individual rights are protected, including property rights. What people don’t realize is that policies targeting the wealthy have always been a factor in preventing them from joining the group, although these policies may be changing, targeting individuals who once supported them.
This is first-order thinking, created with unintended consequences and unplanned impacts; insidious envy, based on the scarcity mindset. In a world of money scarcity, everything else becomes scarce as a result. A wealth tax solves the problem in the same way as revenge, a short-term gratification with dangerous long-term implications.
If you thought the last bull market was exciting, wait until countries start passing wealth taxes. The real value of Bitcoin will be reflected in time. Until then, I’ll remain humble and pile on my seat, waiting for the inevitable.
This is a guest post by Mickey Koss. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.