What Do New Crypto Mining Taxes Mean For Bitcoin?
In early March, the U.S. Treasury announced plans to impose a 30% tax on U.S.-based crypto mining operations. Moreover, the U.S. Treasury signaled that, moving forward, all crypto mining companies will need to provide a detailed report of their electricity consumption, with a goal of getting these crypto miners to become as energy efficient as possible. As might be expected, this has been universally acknowledged as bad news for Bitcoin (CRYPTO: BTC) miners everywhere.
But what impact will the new crypto mining taxes have on the future value of Bitcoin? After all, the U.S. is now the top country in the world for Bitcoin mining, so any negative impact on U.S.-based miners is going to impact the overall Bitcoin ecosystem in a big way. Here's a closer look at three different scenarios and how they might play out.
The good news, if you want to call it that, is that the tax on Bitcoin mining operations won't be effective immediately. It would be phased in over a period of three years, at a rate of an additional 10% each year. This would theoretically give crypto miners the chance to adapt to the new reality. They would have two basic choices: move to a new crypto-friendly jurisdiction abroad or go all-in on clean energy sources that consume a minimum level of electricity.
Source Fool.com
