Kyle Schneps Warns of Potential Catastrophe for American Bitcoin Mining Industry
Kyle Schneps, a renowned expert in cryptocurrencies, has predicted serious consequences for the American bitcoin mining industry due to the proposed law imposing a 30% tax on consumed electricity. Schneps argues that this tax could be catastrophic for the industry in the USA, pushing companies to seek more favorable business conditions abroad.
Moving Abroad: A Likely Scenario
Schneps believes that the new tax sets a dangerous precedent that could lead mining companies to relocate to regions with lower taxes and better conditions. The Middle East, with its lower business and electricity taxes, as well as less strict environmental regulations, is seen as a probable destination for migration.
Examples of Attraction in the Middle East
In Oman, for instance, authorities offer appealing electricity tariffs and a preferential taxation regime for companies engaged in cryptocurrency mining. Meanwhile, in the United Arab Emirates, companies like Digital Marathon and Zero Two are constructing a new production complex for bitcoin mining, featuring cutting-edge equipment cooling technologies.
Support for Schneps’ Concerns
Darin Feinstein, the founder of Core Scientific, shares Schneps’ worries, warning that the proposed bill could seriously harm the American economy.
Warnings from the Crypto Community
There are other voices in the crypto community raising concerns about potential regulatory changes. Cobra, an administrator of the main Bitcoin network infrastructure site, has predicted that US authorities might in the future ban private bitcoin storage.
Therefore, the proposed introduction of a new tax could spur global changes in the mining industry, hastening the shift of companies to more business-friendly regions.
