To be more accurate with the proposal. At least they still have a lot time to prepare, so they could find a safe country that has a cheap electricity cost https://www.cable.co.uk/energy/worldwide-pricing/


Biden must read this project to know the reality instead of falsely accuse Bitcoin for using a lot energy and causing climate change https://bitcoincleanup.com/

due to how asic farms do deals with power companies. they already get discount compared to normal residential/industrial rates.. so a 30% tax is not that much... especially when smart asic farms can just file yearly gains/losses of mining when bitcoin bear markets post the 2025 ATH.. thus can offset losses against tax and thus not have to pay tax

as for the rest of the hobby miners that get caught mining from home, well yes they have to declare their hobby as a business and pay tax, but that will just push underlying costs of mining up for some which will strengthen the underlying value of bitcoin support to never drop below $##k again
so biden effectively gives bitcoin more value by making it more expensive for some to mine bitcoin

the actual repercussions is not the tax cost... but the declarations of sources of income, where power companies will be more likely to become reporting agencies of high use residents, sending agents to peoples homes to investigate reasons for high use of energy (much like they did when weed farming was illegal and authorities used energy bills as suspicions of running a weed farm)

30% of miner's electricity cost? It's not small, even considering miner usually get bulk/discounted price. Unless electricity company in U.S. can offer even cheaper rate within few years, we'll see miner leaving America.

Trump could at least probably do more than tax more than necessary. Biden is facing a comparable opponent for the second time, so if he wants the votes of the Bitcoin community then the decision he made today was the wrong one. Currently dealing with US policy is very difficult, strict and has too many rules, miners need to move if they want to get relief.

I’m curious to know, is the "30% tax on electricity used by crypto miners" higher than the tax on production or used in commercial activities? If higher, then another question arises. Why is there such discrimination against mining? Does the government believe that this is an overly profitable industry, which means it needs to be strangled with taxes?

If they wanted to allow this industry to develop, then taxes would, on the contrary, be reduced to attract new miners to the country. High taxes only discourage miners.

It should be recognized that any government of any country will try to do this. Taxes are not the worst thing, but criminal prosecution is a completely different matter, like having a "room full of firearms".

I imagine that it will be a global trend for governments to start creating taxes for those who use cryptocurrencies, it is a path of no return, starting with ETFs, the traditional market and the government cannot do anything about it, just tax and try to censor, and that is what they will do. But a bitcoiner doesn't care about that. And there is nothing governments can do either.

Just narratives to convince people to pay taxes on their currencies otherwise they will be compared to marginal. Who cares?

That is tax evasion and it is a crime, i don't think miners would want to take that risk, if this is implemented and some of them cannot cope with it as it eats into their profit, they will pack up their gears and move to another location with cheap electricity and favorable laws. I don't know if the government is doing this to attack BTC, because they know that the u.s. has most of the BTC miners, and a lot of them may be forced to leave if this gets implemented.

It is like lawsuits from SEC. against cryptocurrency companies like exchanges and it is considered as their over wrongly used power to force companies move out of the USA. In a Congressional hearing months ago, SEC. Chair Gensler was asked about it and he failed to response convincingly.

I agree with you but at least in the USA. there will be fighting between two parties and it's better for their citizens. It's better than in China when one party controls all aspects in that nation. No democracy in China and it is not only about Bitcoin mining industry.

The end game will be defending their national currency but their politicians have to bargain with their citizens when they need votes. I see it is still good for human rights and benefit their citizens can fight for.

If the Republic party takes over the White House with Trump and more improvements in the Congress, they might do something more positive for cryptocurrency industry, for Bitcoin community. If their actions in future are not enough, they will lose their positions next 2 or 4 years and the cycle will repeat.

He's not, he's proposing this to Congress. Just like every other president we've ever had. Jeez.

Enough time to make plans

In any case, there is a good chance that more and more of such negative news would start coming out of United States in the following years. From increased taxes on miners, traders, crypto related businesses, etc. all the way to any individual that has ever thought about a cryptocurrency.
The more Bitcoin grows, they more they'll fight it.