The post Is France’s New Tax on “Unproductive Wealth” a Threat to Bitcoin Price? First appeared on Coinpedia Fintech News
France is shaking up the cryptocurrency world as it considers a new tax on “unproductive wealth.” This includes Bitcoin along with luxury assets such as yachts, private jets, and luxury cars. So how will this affect the Bitcoin price? Will these new taxes make cryptocurrencies less attractive to investors?
France’s proposed tax on “unproductive wealth”
The French government is exploring a bold move to tax ‘unproductive wealth’, a term targeting assets that do not directly generate income. This list now includes Bitcoin along with other unproductive luxuries such as private jets, yachts, and luxury cars.
Historically, wealthy individuals have used these assets as a way to preserve and grow their wealth. But a new proposal from France aims to change that by imposing a tax burden on them.
The idea behind this tax is simple. This means that if an asset does not directly contribute to the economy or generate income, it should be taxed more.
The plan has sparked controversy, with many arguing it could discourage investment in digital assets such as Bitcoin and traditional luxury goods. Meanwhile, this plan is still under discussion, but it could make it more expensive for French citizens to hold such assets.
How will this affect Bitcoin?
Bitcoin, a decentralized asset that does not generate returns, falls into this category. If the government focuses on taxing Bitcoin, it could lead to a decline in demand as investors may shy away from buying or holding the digital currency due to the potential tax burden.
While this tax could reduce liquidity and cause a short-term price decline, it could also lead to increased regulation of Bitcoin in other countries.
Bitcoin price update
Bitcoin recently achieved historic monthly gains, adding $26,400 to its value and closing at an impressive $96,400. Although it is currently trading at $95,360, the cryptocurrency has shown remarkable resilience thanks to strong market dynamics.
Bitcoin has yet to surpass $100,000, but it continues to hover near its recent high of $99,000, keeping investors optimistic.