Mining has always been considered Bitcoin Bitcoin A divisive topic, even within the cryptographic spaces, where the high power use of network validation has often fueled arguments against the technology, leading many governments to consider cracking down on this activity in various cases.
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US President Joe Biden’s administration recently highlighted plans to impose a strict tax regime on cryptocurrency mining, in a blog post on Tuesday, May 2. Miners will pay 30% of the electricity they consume in taxes, according to the White House Council of Economic Advisers.
On the other hand, the Biden administration argues that crypto miners do not take responsibility for the perceived cost they impose on others, in the form of local environmental pollution, rising energy prices, and the climate impacts of growing greenhouse gas emissions, due to their energy use.
The administration further claims that cryptocurrency mining fails to provide the same economic benefits associated with industries with similar energy use.
On the other hand, it is not surprising that a society Bitcoin Bitcoin Not taking the White House’s allegations seriously, many influential members of the community have taken to Twitter to block the Biden administration’s claims and priorities.
The vice president of research at RRiot Platforms, Pierre RochardThat this was the worst time for the White House to draw attention to… Bitcoin Bitcoinsuggesting that it will only drive more people into cryptocurrency, in the wake of US banking concerns.
In turn, the Associate Professor and Chair of the Department of Economics at the University of Mississippi discussed, Joshua Hendricksonthat electric vehicle advertising and criticism of bitcoin mining is problematic:
As a researcher at the Bitcoin Policy Institute, Andrew M. Baileyhe criticized narrowing down how energy is used, rather than focusing on improving how it is produced to combat climate change, stating that the government is interfering with people’s choices:
Notably, Bitcoin mining is not directly responsible for global warming emissions, and proponents often stress the increasing reliance on clean energy sources.
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However, critics argue that the high demand for energy uses energy that would otherwise be used by other industries, and these critics point out that electricity distributors are forced to continue to rely on fossil fuels to meet the growing demand for crypto mining.