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The holding period primarily protects small savers

Why eliminating the holding period would primarily affect those who want to build long-term wealth

When people talk about Bitcoin, they often think of millionaires, speculators, or institutional investors.

In reality, however, things are usually different.

Many Bitcoin owners don’t invest large sums; instead, they regularly set aside small amounts. Month after month, 10, 25, or 50 euros go into a savings plan—similar to an ETF or a traditional mutual fund savings plan.

For many people, Bitcoin is not a short-term speculative investment, but rather a long-term component of personal wealth building.

It is precisely this group that would be particularly affected by the elimination of the tax holding period.

The Typical Bitcoin Saver

Let’s take Lisa as an example.

Lisa is 29 years old, works as an office worker, and is concerned about her financial future.

She knows that the government pension alone probably won’t be enough. That’s why she saves regularly.

Every month, she invests:

• 100 euros in an ETF
• 50 euros in Bitcoin

Not because she wants to get rich, but because she wants to build wealth over the long term.

Over a period of ten or twenty years, even small amounts can make a significant difference.

It is precisely these types of investors who are shaping the crypto market today to a much greater extent than the image of the risk-taking high-stakes speculator would suggest.

Most crypto investors invest small amounts

Various studies show that the vast majority of cryptocurrency owners do not hold large fortunes.

According to data from the European Central Bank, the following countries have:

• 54% of crypto holders have less than 1,000 euros
• about 91% less than 20,000 euros

So the typical crypto position is relatively small.

Most investors are individuals who save and invest modest amounts.

That doesn’t mean there aren’t any large Bitcoin holders.

But the vast majority are ordinary citizens who want to build their wealth step by step.

Bitcoin savings plans have long been part of everyday life

Just a few years ago, buying cryptocurrencies was complicated.

Today, many banks, brokers, and crypto platforms offer savings plans that work similarly to ETF savings plans.

Investors can automatically buy Bitcoin starting at just a few euros a month.

The principle is simple:

• invest regularly
• Offset Exchange Rate Fluctuations
• Build wealth over the long term

For many young people, Bitcoin has therefore become an additional savings tool—alongside money market accounts, ETFs, and stocks.

Politicians are calling for more private retirement savings

For years, politicians have been pointing out that private retirement savings are becoming increasingly important.

In recent years, the federal government has introduced various reforms aimed at encouraging more people to save for the long term.

The message is:

Anyone who wants to plan for their financial future should take responsibility and build up their assets.

That is exactly what millions of citizens are already doing.

Many people invest in ETFs.

Others invest in stocks.

And some people also save in Bitcoin.

That is why it seems contradictory to promote long-term private retirement savings through policy on the one hand, while on the other hand imposing a higher tax burden on long-term Bitcoin savings of all things.

What the Elimination of the Holding Period Would Mean for Small Savers

For many people, it’s not just about the tax itself.

The holding period also makes things simpler today.

Anyone who holds Bitcoin for more than a year can realize gains tax-free.

The rule is easy to understand.

If the holding period were eliminated, every sale would have to be reported for tax purposes.

This means:

• more documentation
• more evidence
• more work on the tax return

Large investors can use tax advisors or specialized software for this purpose.

For small savers, this means additional red tape.

As a result, this burden often falls on those who invest only small amounts.

Small profits are already taken into account today

It is often overlooked that tax law already takes smaller investors into account.

Private sales remain tax-exempt up to an exemption limit of 1,000 euros per year.

This already provides some relief for those who only occasionally make small profits.

The holding period complements this protection.

It ensures that long-term wealth accumulation is not permanently tied to tax obligations.

Yes, large investors also benefit

Part of the truth is also this:

It’s not just small savers who benefit from the holding period.

Those who hold large amounts of Bitcoin naturally benefit more in absolute terms.

This argument is frequently cited by those who support abolition.

However, it does not explain why millions of small investors, of all people, should also be burdened.

If the political goal is indeed to impose higher taxes on very high profits, there are more targeted tools available to achieve that.

A blanket elimination of the holding period, on the other hand, would affect all investors equally—regardless of whether they invest 25 euros a month or several hundred thousand euros.

Why the image of the wealthy crypto speculator is often misleading

Public debate often focuses on spectacular success stories.

About people who bought Bitcoin early on and are now millionaires.

Such cases do exist.

However, they do not represent the majority of investors.

Most Bitcoin owners regularly save small amounts and take a long-term approach to investing.

They do not trade every day.

They do not engage in short-term speculation.

They are simply trying to build wealth for the future.

It is precisely these people who would be particularly affected by the elimination of the holding period.

Conclusion

The majority of Bitcoin and cryptocurrency investors are not large investors or institutional market participants.

These are primarily private individuals who regularly invest small amounts and wish to build wealth over the long term.

For this group, the holding period means more than just a tax benefit.

It provides planning certainty, reduces bureaucracy, and supports long-term savings.

Anyone who wants to promote private retirement savings through policy should keep in mind that many people today use Bitcoin for exactly that purpose.

A blanket abolition of the holding period would therefore not primarily affect a few large investors, but rather the many small savers who are taking responsibility for their own financial future.

Sources and Further Information

• European Central Bank (Consumer Expectations Survey, 2024)
• Bitkom Research 2025
• Strategy& / YouGov 2025
• German Stock Institute 2025
• extraETF Market Report 2025
• Federal Ministry of Finance: Reform of Private Pension Plans (2025)
• 2025 Coalition Agreement
• § 23 of the Income Tax Act (Private Sales Transactions)
• 2026 Bitcoin Adoption Study (Peter Rochel / Oberwasser Consulting, qualitative DACH study)