Biden's 30% tax on mining: what's next for Bitcoin?

So, President Biden's team just dropped a 30% tax on the electricity used for bitcoin mining. Honestly, mining wasn't exactly a goldmine even before this tax came into play. How's this new cost gonna shake things up for Bitcoin mining? Are we gonna see new miners jumping into Bitcoin mining because of this tax? What's gonna happen to hashpower with a 30% mining tax hanging over us? I mean, even without this tax, some mining companies were already losing money. What's the vibe among those older mining companies about this new tax?

Bitcoin mining profitability is mostly seasonal with several factors determining the profitability such as Bitcoin Price, hash rate and the changes in Bitcoin transaction fees. Will the 30% tax on Bitcoin mining work outside the US?  Absolutely nothing, mining is not done only in the US. Also, not everyone in the US will stop mining because of the 30% mining tax If you were a miner, what would you think about the tax?

In my humble opinion, this will lead to the concentration of miners in the large entities (eventually exposed to the government) that can afford having their own power plants (talking about the U.S. of course).

Well Trump taxed  China imports at 30% I have paid thousand in import duties . It slowed my mines growth. I would need to read the tax bill proposed to under stand if it will hurt my mine as much or more than the import tax.

That's a very high tax rate. Companies will move to another country instead of paying the tax. BTC is decentralized, so such a law (if it's approved by Congress) won't affect PoW mining in any way. On the contrary, it will make BTC stronger and set the US back in crypto/Blockchain adoption. The country has already been taking an aggresive approach against crypto, so it should only be a matter of time before EU takes the reigns as the world's biggest crypto hub. I hope the 30% tax rate only applies to mining companies and NOT individuals. Because that would only make matters worse. Who knows what's next in store for Biden's "Anti-Crypto Agenda"? Just my thoughts

Yeah its a huge jump and most of them might run away or just pay the tax till the new regulation says "BAN ON CRYPTO MINING".  or  they might declare non-mining operation and say it datacenter or so. Kazakhstan is crypto-mining friendly but I don't know until when it going to last. Since there is news that says "An individual's income from the sale of digital asset issued by a foreign issuer will be subject to personal income tax at the rate of 10%. The taxable basis will be the positive difference between the sales price and the purchase price of the digital asset." - https://www.mondaq.com/tax-authorities/1290116/changes-in-the-digital-mining-taxation-in-kazakhstans Just the sale of digital asset Is the regulation import still there, I mean if tax on mining is approved you need more time to even ROI right?

In my point of view that Bitcoin and also crypto might be in great danger because having 30% taxes on the Bitcoin could cause significant ending of mining powerhouse that run full on crypto and it could be a disaster for the Cryptocurrency community too. So by the way if these miners are agreeing to paying taxes.

well i'd say the usa is already hamstrung by the IRS backwards legislation about wanting to have a record of every single transaction you do even if it's just a cup of coffee you have to keep records on it and report it. so this won't really change anything who wants to use crypto in the usa?

Simply put: wouldn't mining just move to non US domicile facilities? That is the most straightforward. And have a mix of JV entities in the end

I know a man in the U.S that use solar power to mine Bitcoin, I lost contact with him in 2022,  he told me how he makes money by selling power back to the Grid, I would have love to hear what he plans to do with this 30% tax on Bitcoin mining, because it is not possible to keep mining 24 hours per day using solar energy without the grid power.

30% of what exactly? 30% of your total electricity bill?   i mean if he's mining with his own power then he doesn't have to pay anyone any tax for using that electricity. so he's good. if he has batteries then maybe he can be mining at night. but not sure how feasible that is

We have 3 arrays 280 kwatts 110 kwatts   45 kwatts 435kwatts total which with grid sales means we burn 60kwatts 24/7/365 and net zero so 60kwatts of free power but our mine burns 130kwatts so we buy 70 kwatts an hour on the cheap My guess is if this happens we have to cut back to 60kwatts of free power and no cheap power with that 30% tax. No worries as that bill will bomb.

They are crazy, they want to earn 30% taxes from the miners, but they run to protect traditional bankers when they go broke...

Correct me if I'm wrong but it seems that we in the US already pay taxes and fees on our electric bills. Seems like the exact definition of double taxation and is nothing more than a money grab.

In theory yes, but there is no other place on the planet that can facilitate the amount of hashrate the U.S has, the U.S is where the money resides,  U.S large miners who now make up nearly 50% of the total hashrate wouldn't be able to collect half the money elsewhere, investors in the U.S have a ton of money to risk which is why large U.S mining companies grow at a very unrealistic rate despite having made worse decisions than any rookie miner (like buying those tens of thousands S19s for $15,000 right at the peak of the cycle) So not all of the hashrate will be able to move elsewhere if shit hits the fan, moreover, I think the proposed tax is just on the power bill, not the total income, so the companies that pay 5 cents per kWh will have to pay 6.5 cents, is it going to hurt? of course? is it going to be the end of the world for them? no.

That bill is not passing.

according to: https://cointelegraph.com/news/biden-budget-proposes-30-tax-on-crypto-mining-electricity-usage The tax would be phased-in at 10% per year over three years and covers electricity generated from both on and off-grid sources. Crypto miners who acquire their electricity needs off-grid would still be subject to the tax and would be required to estimate the electricity costs generated by any “electricity generating plant.” so you would still have to pay the tax for the 60kwatts though. so then you don't agree that excise taxes are an acceptable thing or you just don't agree that excise taxes for crypto mining are an acceptable thing?

If Biden actually implements that, the only number 1 that will be affected are those who live there in the US. So my question to you is, is the 30% tax you are talking about related to bitcoin and altcoin mining? maybe you are only talking about the traditional mining industry? Besides that, I don't think it has any effect if the US is no longer covered. Of course that will only be effective based on Biden's jurisdiction.

Too much taxation would greatly stifle the growth of the crypto industry within the country. Consider how things didn't end too well for India when it imposed huge taxes to crypto users. Taxes need to be moderate to help prevent big industry players from migrating to another country. I'd say a 30% mining tax is too high. Hopefully, it'll get rejected by Congress, else there will be a mass exodus of miners from the US to other countries that are much more flexible. Every transaction made on the US with crypto is already considered as "taxable", so I don't get why the government wants to add more taxes on top of existing ones. It's all a deliberate attempt to try to harm crypto/Blockchain tech for good. Who knows where this will lead the country in the future? Just my thoughts

found full paper https://home.treasury.gov/system/files/131/General-Explanations-FY2024.pdf and I think the wash rule is more likely to be adapted than the power rule. Also I read the power tax rule I think my 125 kwatt per hour  of which 60 kwatts is my solar nets to 65 kwatts as I  am net meter. Thus if I pay 10 cents for 1 kwatt first year I go to 11 cents second year I go to 12 cents third year I go to 13 cents. 13 x 65 = $8.45 an hour 202.80 a day by year three. 10 cents is not my price. I am closer to 5 cents so 101.80 a day by 2026 in power vs 78  a day for my company  in 2023 if I understand the net metering correctly. so 23 a day is 690 a month best case worst case 1200-1300 a month I can survive that