The debate around mining and taxation of cryptocurrencies is still going strong. White House advisers revived the conversation, to which a prominent US environmental lawyer named Robert F. Kennedy Jr.
Robert talked about cryptocurrency and the potential ramifications of a proposed 30 percent tax on cryptocurrency mining activities. It has been said that cryptocurrencies such as bitcoin are an important innovation driver. However, they have also sparked discussion regarding the energy used and whether it is sustainable.
Robert discussion
According to Robert’s discussions, mining cryptocurrency requires almost as much power as playing video games, leading some people to claim that it should not be allowed because it wastes a lot of energy. However, people who support cryptocurrency mining argue that using too much energy is not inherently evil, and instead the generation methods used to produce energy should be criticized.
The discussion also highlights issues related to energy use and the need for a diversified ecosystem for different currencies. Robert believes that the economy will be more robust if it is not based on a single central currency but on a diversified currency environment. Just as an environment with biodiversity is more resilient, so will our economy be more resilient if it has a diversified currency environment.
In addition, the debate highlights how important belief in government and privacy is in personal life. Others maintain that it is not just criminals who need to remain anonymous, although some people call for strict oversight of cryptocurrencies to prevent their use by criminals. Private individuals and dissidents prioritize anonymity, which is especially important in countries where the government uses its power to regulate bank accounts and payment systems to suppress dissent and harass its opponents.
(embed) https://www.youtube.com/watch?v=JT22_dUsl5M (/embed)
On the other hand, the idea that power use is a chosen excuse to hide anything that undermines elitist power structures cannot be overlooked, says Robert.
The debate about the energy use of cryptocurrency mining still needs to be concluded. It raises critical considerations regarding sustainability, creativity, and the need for a diversified ecosystem of different currencies. The Bitcoin mining tax proposed by the Biden administration may have some upsides. However, it also runs the risk of preventing innovation in a sector that could fuel massive economic expansion.