Biden Administration Still Wants 30% Tax on Bitcoin Miners

Biden Administration Still Wants 30% Tax on Bitcoin Miners

The Biden administration has reiterated its desire to levy a strong tax on bitcoin miners.

Recently, the administration of US President Joe Biden reiterated that it wants all crypto mining activities like ‘bitcoin mining’ to pay a new tax that costs 30% of their electricity costs.

In a post on the digital asset mining energy tax, it was highlighted that cryptocurrency mining is controversial because it uses a huge amount of electricity to calculate and verify. transactions on the blockchain so these mining activities need to be taxed.

“The increase in energy consumption due to the development of cryptocurrency mining has a negative impact on the environment and can also have an impact on increasing electricity prices for those sharing the grid with other utilities. exploit. Mining has associated environmental impacts and many other harmful effects,” the report said.

According to Digiconomist, bitcoin mining currently uses more electricity than Finland, Belgium or the Philippines.

Since China bans bitcoin mining in 2021, the US has become the ideal place for cryptocurrency miners to set up mining facilities. And within the last 2 years, many of the biggest mining companies have come to the US making the country a global hub for this activity.

The Biden Administration’s proposed tax on crypto mining is intended to stifle this growth, with the intention of “reducing cryptocurrency mining” in the US.

See also: America’s First Nuclear-powered Bitcoin Mining Plant Deploying Miners

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