Biden administration considering 30% tax on Bitcoin mining

The Biden administration is considering a 30% excise tax to be levied on bitcoin mining, owing to the industry’s rising energy usage. The other factor is the rise in energy costs for those sharing an electric grid with miners of digital assets. Added to that is the damage to the environment. However, Pierre Rochard begs to differ and points at the available data that refute such theories. In fact, in his opinion, Bitcoin mining is bringing about a cost-cutting in energy prices, with more to happen shortly.

There is plenty of electricity wastage due to power generators, grid operators, and utility companies, with Bitcoin miners becoming a source of demand for this wastage. Once they purchase the excess electricity, the players gain from the added revenue generation by reinvesting in power generation and transmission. The result is an increased energy supply, making it more cost-effective for users. Bitcoin mining can monetize energy at the point of its generation. Bitcoin miners can also monetize excess energy, such as natural gas not linked with delivery pipelines, nuclear facilities, and solar and wind farms awaiting transmission lines.

As per his tweet, Pierre mentions that the Biden administration and its allies are not interested in the factual content. He believes their plan is to make it challenging to encourage the adoption of Bitcoin and instead bring in CBDC. Amongst Bitcoin’s qualities is its safeguarding against theft through inflation. Bitcoin is the answer to the government’s lack of answers, and Pierre informs people not to bend as per the government’s wishes.

Trevor Holman

Trevor Holman follows crypto industry since 2011. He joined CryptoNewsZ as a news writer and he provides technical analysis pieces and current market data. He is also an avid trader. In his free time, he loves to explore unexplored places.

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