Biden’s 30% Bitcoin Mining Tax Plan Won’t Work: Marathon CEO Fred Thiel

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In March, President Joe Biden released his annual budget proposal outlining his policy priorities for the coming year. As for the digital asset industry, the proposal was about cryptocurrency mining. Specifically, Biden called for a 30% tax on all electricity used to mine Bitcoin and other cryptos.

However, according to Fred Thiel, CEO of Marathon Digitals, the Bidens tax plan will not work. In an interview at the Bitcoin Miami conference, the Marathon executive hinted that the administration was looking to target the Bitcoin ecosystem. Referring to the potential consequences, he said,

Bitcoin miners will just leave the United States, which is really what they are trying to do. Although I wouldn’t go so far as to say they want to kill Bitcoin, they want to make it very difficult for people to operate.

In fact, Thiel went on to hint that Marathon already had plans to expand outside of the United States. Here it is worth recalling that the SEC issued another subpoena against the Bitcoin mining company. In its recent quarterly report, the company said the case may be tied to its 100-megawatt data center in Hardin, Montana. Nevertheless, the firm claimed that it is cooperating with the SEC. Its report clarified that the SEC may investigate whether or not there have been violations of federal securities law.

Also Read: SEC Files Another Subpoena Against Bitcoin Miner Marathon

Imposing taxes won’t make more renewable energy available: Thiel

Bidens’ 30% mining tax proposal has drawn reactions from both sides of the spectrum. On the one hand, community members seem unhappy. On the other hand, regulators seem to be playing on the same team. Recently, the White House Council of Economic Advisers argued that the proposed tax encourages corporations to start taking greater account of the harm they inflict on society.

In fact, the councils’ report quoted a New York Times investigative article. According to the same, the energy consumption associated with 34 of the largest crypto-mining operations is equal to the power used by the surrounding 3 million homes. Meanwhile, the CEA report pointed out that the amount of electricity used in crypto mining in the United States last year was similar to the amount used to power all home computers or residential lighting in the country.

Thiel nevertheless argued that imposing a mining tax will not lead to greater availability of renewable energy. Specifically, he says,

It will actually create less because if you build a solar farm or a wind farm today, that’s a two-year waiting list for interconnection. And bitcoin miners provide an economic incentive for these people to operate.

Also Read: President Biden Proposes 30% Tax on Electricity Used to Mine Cryptocurrency

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