Biden administration reiterates desire for 30% tax on Bitcoin miners' electricity usage
U.S. President Joe Biden's administration reiterated that it wants all crypto mining operations to pay a new tax priced at 30% of their electricity costs. Proof-of-work crypto mining — which is overwhelmingly dominated by Bitcoin mining — is controversial because it uses vast amounts of electricity to compute and verify transactions on the blockchain. Bitcoin now uses more electricity than Finland, Belgium or the Philippines, according to Digiconomist.
The computational effort involved in mining can be substantial and can therefore require a correspondingly large amount of energy. The increase in energy consumption attributable to the growth of digital asset mining has negative environmental effects and can have environmental justice implications as well as increase energy prices for those that share an electricity grid with digital asset miners. Digital asset mining also creates uncertainty and risks to local utilities and communities, as mining activity is highly variable and highly mobile. An excise tax on electricity usage by digital asset miners could reduce mining activity along with its associated environmental impacts and other harms. Biden's proposals may struggle to make it into law.
Source
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