Mining
The Impact of Bitcoin Mining on Energy Grids
Wednesday. July 24 at 5:00 AM
1 min. readSenator Cynthia Lummis recently published a report opposing the proposed 30% excise tax on energy consumed by Bitcoin miners by the Biden administration. The report, titled 'Powering Down Progress: Why A Bitcoin Mining Tax Hurts America,' sheds light on the crucial role of Bitcoin mining infrastructure in the US energy grid. Lummis highlighted the cleaner nature of Bitcoin mining, with up to 52.6% being emissions-free. She emphasized how mining facilities can help stabilize and redistribute energy to grids during peak demand, citing examples like Texas. The report also discussed how taxing miners could discourage sustainable energy practices. Lummis warned that imposing higher taxes might drive the industry out of the US, similar to what happened in China. The report underscores the importance of supporting and incentivizing sustainable energy practices within the Bitcoin mining sector.