Biden proposes 30% climate change tax for Bitcoin miners

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In a major setback for crypto miners in the US, the White House is lobbying Congress to include a 30% tax on the cost of electricity used to mine cryptocurrencies in the upcoming federal budget . This development follows repeated allegations by US governments of potential environmental damage caused by a subset of the cryptocurrency industry.

US Says Crypto Mining Poses Threat to Society

According to a recent report expected to be released at the White House today, the President’s Council of Economic Advisers (CEA) claims that the high energy consumption of crypto miners is having a negative impact on the environment, the quality of life and the electrical networks where such businesses are located.

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Cryptocurrency mining activity is being unfairly targeted, say those who oppose the planned tax. The widespread crackdown on crypto by regulators and now a bill to impose a hefty tax stand out as a sore eye for the broader crypto market and part of a larger anti-crypto crusade. According to Tom Mapes, head of energy policy at the Chamber of Digital Commerce, who spoke to Yahoo News, said this was just one way to attack the industry they do not support.

PoW bitcoins in controversy

The Bitcoin proof-of-work mechanism has long been appreciated and debated since its inception. Massive supercomputers compete to be the first to solve a mathematical puzzle in the PoW cryptocurrency mining process. According to a report released by the White House in September last year, cryptocurrency mining consumes more electricity than the entire Australian country. Cryptocurrency mining is estimated to account for 0.9% to 1.7% of total electricity consumption in the United States, which is home to around a third of all mining operations.

Recently, the Cryptocurrency Environmental Alliance (CEA) stated in an article that currently cryptocurrency mining companies do not have to pay the full cost they inflict on others, which includes environmental pollution. local, rising energy prices and the massive impacts of rising greenhouse gas emissions. gas emissions on the climate.

As of this writing, the Bitcoin price is currently trading at $28,046 with a market capitalization of $544 billion.

Also Read: US Investors Are Leaving Crypto Exchanges, But Where Are They Going?

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