Joe Biden has proposed that major crypto mining companies be taxed 30% of there electricity costs for the pollution they produce and the minimal amount of benefits that the industry bring to local communities. The Council of Economic Advisers suggests that over $3.5 billion could be raised over the next 10 years.
This proposal from Joe could see lots of crypto mining companies like Riot Blockchain Inc, EZ blockchain and Marathon Digital Holdings have to make redundancies or even shut down entirely to keep from going under.
This could come with some unexpected benefits. With less major crypto miners out there mining crypto it could lead to a decrease in the total hash rate and mining with small rigs could become more profitable.
A downside is that lots of people might not have known what bitcoin mining was until Joe proposed this 30% tax and it may lead to a rise in small time miners wanting to see what all the hype is about. This is especially so in the next year because of the upcoming bitcoin halving.
So, in conclusion this new 30% tax proposal could come with benefits to the crypto community rather than the anticipated downsides. As for bitcoins price if this goes through, I dont know. Anything could happen big companies could just keep on going and accept the heavy hit to profits or maybe there will be a wave of mining collapses and a rise in small home based rigs. We will have to wait and see...
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This is was not intended to be investment advice! The article you have just read was written by an incompetent fool. Please always double check the facts and do your own research.
