Mining Bitcoin in the US might soon no longer be worth it
There is a reason why mining for cryptocurrency is so popular. This is because of the value of cryptocurrencies such as Bitcoin where a single Bitcoin is worth close to $30,000 (at this time of posting), making it a very lucrative endeavor for those who are looking to make some money.
Unfortunately, for those who are mining in the US, it looks like your mining activities could get more expensive. This is because the US government has announced a new proposal, called the Digital Asset Mining Energy (DAME) tax, which would basically impose a 30% tax on mining activities based on the total energy cost consumed during the mining process.
For those unfamiliar with the process of mining cryptos like Bitcoin, basically users need to “solve” complex algorithms. In order to solve these algorithms, they would require computers with powerful hardware because it’s usually done on a first-come-first-serve basis, where the user with the more powerful machine will be able to solve the problem first and claim the crypto as theirs.
As a result, many miners have created “farms” of computers running 24/7, which in turn consumes a ton of energy. By introducing this tax, it could potentially dissuade people from mining crypto because it would mean that their margins are smaller and may no longer be worth it.
At this point in time it is unclear if this proposal will pass, so we will just have to wait and see.
Source: Gadgets360