You will see actions at the individual state level.
States with abundant power will welcome the miners with incentives (tax cuts) while others would impose high regulation cost.
Topic: Future of Mining Regulations in the USA (Read 480 times)
As to the above, I'd bet if you're talking about the United States it'd be the former (higher taxes for miners), especially given how much electricity is used. The only way I could see anything being subsidized would be if a mining operation were to use green methods in their farming, e.g., solar or wind. I haven't got a great sense of how the US government views bitcoin--there's nowhere near the amount of regulation I figured there would be at this point, but there's not exactly a lot of support for it on the federal or state level
Most if not all large scale mining in the USA already IS using 'green energy'. AFAIK the vast majority are using hydroelectric followed by wind. For hydro users in the Northwest the reason is simple: Due to several large river systems emptying into the Pacific ocean there are several very large dams located there so the power is cheap (and 'green').You want subsidies? If you are in the US then you need to checkout Section179.org to see the rather massive credits a business can get for buying the hardware. While Section 179 of the US tax code applies to all small/medium-size businesses purchasing equipment it seems that a lot folks do not think of it applying to miners. If you are a mining business it DOES.
Section 179 at a Glance for 2021
2021 Deduction Limit = $1,050,000
2021 Spending Cap on equipment purchases = $2,620,000
Bonus Depreciation: 100% for 2021
Bitcoin is still very new to the rest of the industries in the world, and to governments which move like snails. We all know regulation is coming, especially as bitcoin mining's energy usage increases. So far mining has slid under the radar with businesses categorizing themselves under a wide variety of other industrial types. All miners need to be prepared for what types of regulations are coming, and I'm wondering if anyone has any clues or evidence to what type of regulation bitcoin mining might see in the near future. Increased tax? Subsidies? (I wish) Does anyone have any sources/clues or just speculation on what the future of bitcoin mining regulation might be?
I don't think anyone really cares about the power usage, at least in the USA. As long as the miners pay for their power and aren't running a 100 miner farm at a residential address, things will go on as they have been. Maybe regulation loving states like California will crack down, but people will just move operations out of there.
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So far mining has slid under the radar with businesses categorizing themselves under a wide variety of other industrial types.
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Most governments already deal with crypto and have laws directly related to it.So far mining has slid under the radar with businesses categorizing themselves under a wide variety of other industrial types.
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As for mining, I'm not sure how you think companies using MWatt power are hiding that they are using MWatt power.
I know of a number of companies all over the world (and in the usa) that have been doing this for a years and reporting as being crypto mining companies.
As to the above, I'd bet if you're talking about the United States it'd be the former (higher taxes for miners), especially given how much electricity is used.
Why so? consuming energy could be a net positive for the economy, generating energy is about extracting value from things that wouldn't be utilized otherwise, I am not a U.S citizen but from what I remember the U.S government usually leans towards making life more difficult for the average joe and easier for the money-making businesses, lower taxes on mining operations will result in more mining, more jobs and eventually higher taxes from the electric companies and every other firm involved in the "making" of that energy, and the end result is more money to bail out wall street when the shit hits the fan.
Of course, this ignores Ozone depletion and global warming altogether, I honestly not even sure any government really cares about that anyway.
Increased tax? Subsidies?
Huh, wonder why nobody has replied yet.As to the above, I'd bet if you're talking about the United States it'd be the former (higher taxes for miners), especially given how much electricity is used. The only way I could see anything being subsidized would be if a mining operation were to use green methods in their farming, e.g., solar or wind. I haven't got a great sense of how the US government views bitcoin--there's nowhere near the amount of regulation I figured there would be at this point, but there's not exactly a lot of support for it on the federal or state level (nor by the banking system, which is in bed with the government).
I'm not a miner, but it is something I'm interested in, and I'd be curious to hear some wisdom from some experienced folks in this section, and I know they're here.
Bitcoin is still very new to the rest of the industries in the world, and to governments which move like snails. We all know regulation is coming, especially as bitcoin mining's energy usage increases. So far mining has slid under the radar with businesses categorizing themselves under a wide variety of other industrial types. All miners need to be prepared for what types of regulations are coming, and I'm wondering if anyone has any clues or evidence to what type of regulation bitcoin mining might see in the near future. Increased tax? Subsidies? (I wish) Does anyone have any sources/clues or just speculation on what the future of bitcoin mining regulation might be?
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