High-net-worth cryptocurrency big shots, how do they manage their wealth in the United States? Here’s an example: You have 500 Bitcoins. Initially, your purchase cost is very low—say your total cost is $1 million. Now, the market value has already reached $50 million. You don’t sell these Bitcoins, but instead take out some of them to use as collateral, get a $20 million loan, and use it for spending on food, drink, and fun.

During your lifetime: Don’t sell the Bitcoins, so the $49 million appreciation portion doesn’t need to pay capital gains tax. Use the loan for spending, and pay interest every year (or keep borrowing to cover the interest).
When you pass away: these Bitcoins are reset for tax basis based on the market price at that time. The huge appreciation during your lifetime basically doesn’t need to be taxed, and then you use some of the Bitcoins to repay the loan principal and interest.
Finally: the remaining Bitcoins are passed on to your children. Your children’s cost basis is the market price at the time of inheritance, and after that, only the new appreciation needs to be taxed.
But when the children inherit, the cost basis is already the market price at that time (tax basis reset). As long as the children don’t sell the Bitcoins, they still don’t need to pay capital gains tax.
Then, the children can also: continue to collateralize Bitcoin loans, use the loans to cover living expenses, and pay interest every year (or keep borrowing to cover it). Then the cycle continues from generation to generation.
So, why own Bitcoin—you know it now?
But you also need to meet 4 conditions:
You have enough Bitcoins.
Bitcoin always has value and rises over the long term.
And it can always be used as collateral to borrow money.
At the same time, the volatility must not blow you up early (forced sale).