Biden Crypto Mining Tax Counter-Productive

The proposal to impose a 30% tax on Bitcoin mining power consumption cost in the upcoming US federal budget could have major repercussions in the global mining scene. If the proposed bill gets the Congress approval, the US administration could impose a 10% initially for an year, before raising 10% per annum to 30%. Essentially, taxation on mining is a way to discourage crypto mining in the United States and hence will only become a matter of an alternate jurisdictions for mining companies. Already, Coinbase on Tuesday announced it was launching the Coinbase International Exchange.

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Earlier, CoinGape reported that the President’s Council of Economic Advisers (CEA) pointed to effects of crypto mining related high energy consumption. The Council is said to have mentioned in an upcoming report about the negative spillovers on environment, quality of life, and electricity grids.

Nic Carter Says Taxing Would Increase Emissions

Ventire capitalist and popular crypto figure Nic Carter argued that the Biden taxation move could actually be counter-productive to the environment. He added that jurisdictions like China, Russia, Kazakhstan, Iran, Venezuela and Malaysia have higher carbon intensity for Bitcoin mining related power generation.

“Banning mining in the U.S. won’t cause there to be less BTC mining. It will simply mean that mining occurs elsewhere. Other places with higher carbon intensity BTC mining.”

It may also be recalled that billionaire Elon Musk said Tesla was staying away from Bitcoin due to the emissions release from electricity generated for Bitcoin mining.

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Anvesh reports major developments around crypto adoption and trading opportunities. Having been associated with the industry since 2016, he is now a strong advocate of decentralized technologies. Anvesh is currently based in India. Reach out to him at [email protected]

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.