Crypto Mining Industry Under Fire From White House – New TAX Plan Announced – 251

The White House has proposed a 30 tax on Electricity used for Bitcoin and crypto Mining we've been aware of this for a While because the proposal was loose Previously but it seems to be formalized At this point the White House has Officially introduced a proposed 30 Percent tax on electricity used for Bitcoin mining specifically the Biden Administration has pushed for the tax in Its newest budget for the fiscal year 2024. in a blog post on the White House Website the administration laid out the Tax plan the proposal titled the digital Asset mining energy excise tax Dame for Short is set to be phased in over the Course of the next three years Subsequently taking aim at crypto Mining's energy consumption and Environmental impact the White House has Proposed a 30 tax on electricity used For Bitcoin mining a post from the Administration referred to the proposal As quote making crypto mining pay for Costs they impose on others end quote I'm going to go through the actual Process here once again so people Understand How this works when we are talking about Curtailment curtailment is going to be The key word here when you have this Discussion with people outside of the Know surrounding cryptocurrency here's How a power Co-op or power company that

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Delivers power to your individual house Functions or business right in most Cases and that is that you have power Generators and power deliveries and then You also have usually a governing body Over that that helps regulate all of That it's basically a stock market with Different options for purchasing power So a lot of power companies will go into That market purchase a set amount of Power and then have that power set aside For whatever length that term may be in Some cases and they use a lot of Predictors but in some cases the Predictions are incorrect and what ends Up happening is they run out of power on A high demanded day when this happens The the individual power companies that Are delivering the power to individuals And businesses will have to go on to Basically what is a spot market and Purchase power for that day because Demand is high for that day the cost for That power is heightened right it goes Up and for example in Texas what we saw Was a price in the winter storm from Five cents a kilowatt hour to five Dollars a kilowatt hour that cost does Not get absorbed by the power company Itself that cost gets absorbed of course By the consumer so in relation to Bitcoin mining the practice is known as Curtailment and what curtailment is is The ability for that load to be turned

Off at any given time to provide load Back to the grid so that the power Company does not have to go back on to The spot market and purchase that power At a high cost thereby saving the Individuals and the businesses that are On that power companies grid money and That is why this is an important topic To understand because they are not Imposing costs on others they are Reducing costs on others that are within Their same Regional area So anytime you hear this from others Stop them and educate them on how the Actual industry works so that they don't Say stupid stuff like our White House is Saying Moreover the tax plan is just set to be A part of the administrator's 2024 Budget the Biden Administration stated That the Dame tax is addressing both Long-standing National challenges as Well as emerging risks regarding digital Assets additionally noting the need to Combat quote the economic environmental Costs of current practices for mining Crypto assets let's talk about Environmental costs I feel like a broken Record sometimes but let's go ahead and Talk about that If we were talking about any given Industry within the United States the Bitcoin mining industry is highly Incentivized

To participate within Renewables a lot Of Industries are incentivized to Participate within renewals but because The major cost for cryptocurrency mining Is going to be the power itself any Incentives that are placed on the type Of energy utilized will be more Beneficial to an industry that's pure Cost is going to be power related right And this is why Bitcoin mining in General has the highest adoption of Renewables at over 60 percent at least At the last time I've checked I think It's even higher than that now And another thing as far as talking About the environment there are a lot of Other practices within Bitcoin mining And cryptocurrency Mining that help Reduce damaging practices to the Environment for example flare gas when Flare gas basically let's go ahead and Talk about this one how that functions Is that natural gas has to be delivered Through pipes and on the initial where The actual entrance to the natural gas Goes into the pipe the pressure in that Pipe is high and the pipes can't carry That amount of pressure so the practice Is known as flaring what this does is Basically a valve opens up and the gas Goes up to the top and they burn that Gas into the atmosphere as opposed to Doing that what Bitcoin miners have done Is cut a smaller rate so that the gas

Company can monetize something that was Previously not monetizable and they Place what is usually a a Bitcoin mining Container which is going to be a Container filled with a bunch of Bitcoin Mining Rigs and then next to that they Put a natural gas generator why is this Important to understand it's important To understand because the process of Burning natural gas through a natural Gas generator as opposed to burning it Straight off into the atmosphere is Cleaner and better for the environment So on the environmental front be Educated so you can have these Discussions because once again we are Seeing complete incompetence and Inability to actually determine any Facts about what is happening within Cryptocurrency mining from our White House at this time the proposal is clear On the administration's perception of Cryptocurrency mining Subsequently noting its effect on the Environment and energy moreover the Administration stated that the Dame tax Encourages firms to start taking better Account of the harms they impose on Society The press release took aim at the Benefits of the industry stating quote Alongside these known costs and risks Crypto mining does not generate the Local and National economic benefits

Typically associated with businesses Using similar amounts of energy noting An underlying disbelief in the purpose Of the practice now of course we could Go here and drive straight directly into Mr Lowry's soft war and begin to explain That Cryptocurrency mining in general will Pose a specific strategic Advantage Within the international economies Moving forward and to stifle Innovation Within that industry will definitely put Nations that do that behind that is of Course my perspective and once again That comes from software once again that Is a correlation to Constantinople not Adapting to canons and and trying to Block cannon fire with shields and Swords and being decimated within a year Of the warning of the invention of Canons conversely various crypto mining Protection bills have been passed in Several U.S states subsequently Introducing a situation of conflicting Perspectives only time will tell how the Proposal is received however the tax is Currently set to be phased in at the Start of the next fiscal year Foreign So if this gets phased in obviously There's going to be a huge shift within Cryptocurrency mining it will be nearly Impossible for large cryptocurrency Bitcoin mining Farms to continue to

Operate within the United States they Will begin to move out to other Locations and I believe that that is a That is specifically a strategically Detrimental move from the US government And we'll have to see how that plays out Now in the actual documentation when I Was looking at this bill they targeted Specifically and I I I'll try to pull This up because I was I was actually Working on a video for this Separately but they targeted at home Crypto miners specifically uh in that in Their actual proposal So if you thought that as an individual Mining from your home you were going to Be exempt from this that is not the case If you have been found mining you will Have a 30 tax on the electricity used For that mining as an at-home Miner Which means all at home mining will be Basically completely unprofitable and Completely impossible for anybody to Operate at this given time And that means we'll have more Centralized larger entities moving to Other countries to continue to mine and Mining will be completely dead in the United States the margins are just not There right if you wanted to say oh well Bitcoin miners back in the bull run or Making a killing fine maybe you can come Up with the 30 tax out of that but in The current position where it sits with

The increased cost of energy as it is It's just not going to be viable thanks For checking out this clip from the Crypto mining show you can check out the Full episode here or more crypto content Down here also I'd like you to check out My locals page at son of a Tech.locals.com where you can become a Member for free or choose to be a five Dollar a month supporter that unlocks Additional content

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