CEO of Marathon Fred Thiel: Biden's 30% Bitcoin Mining Tax Plan Won't Work
The yearly budget plan outlining President Joe Biden's policy priorities for the upcoming year was released in March. The suggestion mentioned crypto mining in relation to the digital asset sector. A 30% levy on all electricity used to mine Bitcoin and other cryptocurrencies was specifically demanded by Biden.
Biden's tax plan, however, won't work, according to Fred Thiel, CEO of Marathon Digital. The Marathon CEO alluded to the administration's desire to target the Bitcoin ecosystem in an interview given during the Bitcoin Miami Conference. He listed the possible effects and said,
In reality, Thiel continued by implying that Marathon already plans to expand outside of the United States. It is important to remember that the SEC has issued another subpoena to the Bitcoin mining company at this point. The company suggested that the filing might be connected to its 100-megawatt data center in Hardin, Montana, in its most recent quarterly report. However, the company declared that it is working with the SEC. According to its report, "SEC may be investigating whether or not there may have been any violations of the federal securities law."
“Bitcoin miners will just leave the U.S., which is really what they’re trying to… While I’m not gonna go so far as to say that they want to kill Bitcoin, they want to make it very difficult for people to operate.”
There won't be more renewable energy available if taxes are increased: Thiel
Both sides of the political spectrum have reacted to Biden's suggestion for a 30% mining tax. On the one hand, locals appear to be unhappy. Regulators, on the other hand, appear to be playing for the same side. The Council of Economic Advisers of the White House recently said that the proposed tax "encourages firms to start taking better account of the harms they impose on society."
In fact, a New York Times investigation item was cited in the council's findings. The same claims that the electricity used by 34 of the biggest cryptocurrency mining operations is equivalent to the electricity utilized by the 3 million nearby houses. The CEA report also emphasized that the amount of electricity consumed in cryptocurrency mining in the United States last year was "similar" to the amount needed to power all of the nation's household lighting or home computers.
However, Thiel contended that imposing a mining tax won't increase the amount of renewable energy that is accessible. In particular, he remarked
“It’ll actually create less because if you’re building a solar farm today or wind farm, it’s a two-year waiting list to interconnect. And Bitcoin miners provide the economic incentive for those people to operate.”