Your proposal is completely unworkable. And I am not moving to some Asian third world to try and avoid paying taxes.
If you plan on holding BTC and never sell it ever then sure, you can hide what you have and never enjoy any of it. Then you might as well buy a painting and put it up on a wall and look at it every year until you die. For people that want to own crypto but also use it down the road to buy whatever is needed there is really no alternative than to come clean with your holdings. Especially if you live in USA, Australia or any other place that requires that you pay taxes. Tax fraud is serious and can land you in the slammer here. How are you going to for example convert $100,000 worth of BTC to fiat? Who will you trust if it is not KYC? How will you explain the $100,000 that ended up in your bank account. If you don't have a bank account, how to you get the fiat? Maybe you get screwed out of your BTC because you went to a back alley?! lol!
For US Citizens, the IRS can show up and ask how you paid for that car, the stereo, the house, your food, etc. The list goes on. Until tax laws change the best most of us can do is deduct legitimate business expenses or hold on to stock or crypt long term to avoid capital gains tax. But in the end you get taxed on it one way or another. My father-in-law has tax free municipal bonds but he's getting a lower interest rate to make up the difference. One way or another you get hit.
Not unworkable at all. I know from the experience of myself and many around me.
First of all, almost anyone in a developed country are there by choice. Even those of us with the misfortune (from a tax perspective) are were born Americans can give up our US citizenship and acquire another. In Asia, you have many choices, including Hong Kong and Singapore (both more commercially and financially sophisticated than Australia). Or you can just structure your time out of a country so you are no longer considered a tax resident.
BTC is meant for HODLing, So yes, what we ALL should be doing is buying BTC and hodling for long term appreciation. Even Chinese who are carefully monitored, store their wealth in BTC. First thing many Chinese do when arriving in HK is to buy BTC OTC (Over the Counter), with zero ability for anyone, including the CCP, to know the identity of their wallet. From there they can transport their wealth to anywhere in the world as needed (or draw upon it as needed in the future). Again, all totally untracked.
There are obvious advantages with BTC over art or physical gold, including transportability, divisibility, and frictionless liquidity to sell at any time in any amount.
Further, you can chose to live in countries where BTC gains are not taxed (being treated as a capital gain, in a country where there is no capital gains tax). Singapore and HK and New Zealand or Dubai are good examples for you in Asia. And many choices in Europe tax haven countries. You don't need to reside in a tax haven full time. What I do is reside for residency purposes in a tax haven, and then just travel as I wish.
As for converting BTC into fiat, may ways to do it without being identified. I have converted BTC to cash in many countries - All over Asia, Europe, Latin America, including also Australia. Not once have I had a problem. I have a friend who bought an apartment in Thailand with BTC, no questions asked. Another friend bought an apartment in Malta. And a 3rd bought 3 villas in Bali, Indonesia. All with BTC. I have a friend in Ibiza who is a yacht broker. They also do the occasional BTC deals for sales of boats. I also have a Bitcoin Visa card, which I registered in my resident location. I then can fund this with BTC and can spend it anywhere in fiat, no questions asked.
But yes, if you are in a heavily controlled country, then putting 100K into your bank without explaining the source, may result in questions. In my case, if I came to Australia, as a non-resident, I could indeed open a bank acct and deposit 100K in BTC proceeds into it, with zero tax as there was no income earned in Australia. There might however be questions as to the source of the income (and there I of course have appropriate documents I could produce from my accountant that would satisfy that the source of the income is not illicit).
And what if you were in a country, where you would be worried about being scrutinized as to how you acquired certain assets? Well that's easy - when you are ready you go overseas where your money is more welcome and your freedom is greater, in the meantime only spending freely on items that will draw less attention - dinners, clubs, clothing, or become more "creative" in being able to show the source of funds (not that I necessarily recommend that).
The irony here, is that those in highly taxed jurisdictions probably need BTC most, yet may be deterred because of tax laws, and as a result miss out on massive wealth gains as BTC adoption grows. Meanwhile, far less sophisticated people sih as Africans, Asians, Middle East Arabs, Jews, Eastern Europeans are all stacking sats without fear, and will get a massive headstart on the BTC adoption curve. My advice, is to acquire peer to peer. The more and the sooner, the better. Hodl. In this next cycle I believe we will get another "0" to over 100K by 2025. And then in the cycle after that, I believe we will get to over 1 million in 2029. In the meantime, use your time to be productive in earning an income in the country you reside in, and of course also continue to educate others on BTC. In time, the BTC will increase so very significantly such that the huge gain you have, will be a "nice problem to have" which you won't be complaining about.
