Biden’s 30% tax is not welcomed by crypto industry

Biden administration proposed DAME tax on Tuesday, which would charge Bitcoin miners a 30 % tax on the cost of the electricity, but crypto industries are not happy with this proposal, have shared negative opinion against this decision.

The Bitcoin mining community is facing a new challenge that could change its future in the United States. The White House has proposed a tax called the Digital Asset Mining Energy (DAME) tax, which would make it more expensive for companies to mine Bitcoin and other digital currencies.

On Tuesday, this proposal was brought back into the spotlight as part of the government’s budget plan for the next fiscal year. The DAME tax would charge Bitcoin miners a 30% tax on the cost of the electricity they use. This tax would be introduced gradually: starting at 10% in the first year, then increasing to 20% in the second year, and finally reaching 30% in the third year.

The idea behind the tax, according to the White House, is to make sure that crypto miners contribute to covering the costs they impose on local communities and the environment. They expect that the tax could bring in $3.5 billion over the next ten years.

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[Etini]

I really don't know which part of the divide to align to with this proposed development. If enforced, it would be a huge strain that might completely destabilize the crypto mining as an economic activity. But then, one has to consider that mining bitcoin takes so much from the generated electricity grid to mine bitcoin. I think the crypto industry should really explore the possibility of using alternative renewable power sources to mine crypto in order to reduce the pressure on the national grid.

 

[saoussen5765]

People think that crypto miners are earning a lot of money but if you compare their spend and what they are earning you find that this assertment is not near to the truth as they are spending a lot of money on farming tools for example.