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Need a little information to put my father at ease about his new Bitcoin investments

First up, I’ve spent some years telling my father that investing in Bitcoin is a good idea. Recently he decided to put some money into it and has concerns that are hard to address:

1. He found this [article](https://www.eff.org/deeplinks/2020/12/us-government-targeting-cryptocurrency-expand-reach-its-financial-surveillance) explaining how Crypto is making it easier to track people. I’ve told him about “boating accidents” and how easy it is to just move Crypto to multiple places the government can never know anything about, but he seems very stuck on this point. He thinks that if the IRS comes knocking then the burden of proof is on HIM to prove he DOESN’T have any crypto
2. DEX’s. The above article states that the Government could “take actions against [DEX’s]” but that doesn’t quite make sense to me since they are… decentralized… so if I am missing something here please let me know.
3. Moving crypto anonymously across international borders. I’ve told him about how easy this is to do, but if anyone could provide a more solid explanation of different ways to do this ( I know of some but I’m guessing there are many) I would be grateful.
4. Capital gain taxes – This one is so stupid, but he doesn’t want to pay taxes on Capital gains. I’ve tried explaining to him that if his investments do very well (for example- gaining 100,000 and paying 15,000 in taxes is still 85,000 dollars he didn’t have before) it won’t really matter, but he seems illogically stuck on this point.
5. FUD – This is what I worry about most. It seems like he is actively finding all the reasons this won’t work out, and I think that will make him very susceptible to FUD, does anyone have historical FUD examples so I can try to put things into perspective?

Thank you guys!



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3 Comments

  1. Your father is smart…he is challenging the merits of the investment and looking for weak links in the armor rather than drinking the Kool-Aid like 95% of the people here. By examining the product he will be more confident or decide that he doesn’t like the product and that’s his decision. Don’t ruin your relationship over investing.

    1, 3, 4: taxes are real for adults. If you ever want to cash out any bitcoin at an exchange, KYC and you are responsible for your history. Boating accidents are great for insurance claims but you can’t claim that you lost your bitcoin when you’re cashing some out in a few years. Be an adult, use crypto tax software and pay your capital gains (15%) same as stocks.

  2. 1. It doesn’t matter if you have crypto. It isn’t taxed until you sell it. The US is not going to ban holding crypto. Even if they tried good luck actually proving in court that someone is the owner of a wallet.

    2. They could try I guess but its just FUD right now.

    3. I dont understand the question. It’s digital. There are no borders as far as the coin is concerned.

    4. Hold long term and it goes down a ton. But yes this makes no sense.

    5. IDK what to tell you there. There’s FUD about literally any topic in the world. You just have to ignore it. Not watching cable news helps.

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