Home Society 30 percent tax on mining is not in sight yet – Cynthia Lummis

30 percent tax on mining is not in sight yet – Cynthia Lummis

In March, you could read in the crypto news that the administration of US President Joe Biden had submitted a new bill which would have negative implications for bitcoin (BTC) and crypto miners. The law wants a 30 percent tax to be collected on the electricity use of bitcoin and crypto miners in the United States. With this, it would like to reduce the impact of mining on the environment. Logically, the proposal has led to the only criticism within the crypto community, but a US senator has also turned his back on the new law and is confident that it will not find its passage.
Bitcoin miners are reassured

On stage during Bitcoin Miami 2023, Republican senator Cynthia Lummis said she believes the proposed 30% tax on crypto mining will not be implemented in the end.

Cynthia Lummis has long been known as a big fan of Bitcoin and the broader crypto industry. She does not hide her support for Bitcoin and is therefore seen by the crypto community as one of the biggest supporters of the industry within the US government.

During an interview, Lummis spoke with Perianne Boring, a member of the crypto advocacy group Chamber of Digital Commerce. Companies within this group represent 50% of Bitcoin’s hashrate and, in Boring’s words, are ‘incredibly concerned’ about the new bill.

However, Lummis came up with a positive reassurance for all BTC miners:

“That’s not going to happen. It is absolutely important that the development of this technology, as well as the bitcoin mining itself, takes place in the United States.’’

Lummis himself therefore believes that bitcoin mining makes a net positive contribution to the environment and energy networks, in contrast to the White House. Among other things, she said the following:

“Bitcoin can even be beneficial for stabilizing a network, as attempts can be made to mine BTC when energy consumption is low, and then to scale back mining when energy consumption is high.”

BTC mining is becoming more sustainable

The fuss within the crypto community regarding the front system has to do with the positive development that BTC mining is becoming more and more sustainable. While the negative effect of mining on the environment is used as a major argument to collect 30% tax, most of the energy used for bitcoin mining would currently be sustainable.

About the author: Christy Olsen

Christy Olsen, a young author who followed in her father's footsteps and took up journalism at school. She often introduces a lot of subjective things into his texts, always tries to state the essence and give a proper assessment.

Load More Related Articles
Load More In Society

Leave a Reply

Your email address will not be published. Required fields are marked *