The discussion around mining and taxing cryptocurrencies is still going strong. White House advisors rekindled the conversation, to which a prominent American environmental lawyer called Robert F. Kennedy Jr. responded.
Robert spoke about cryptocurrencies and the possible repercussions of a proposed tax of 30 percent on crypto mining activities. It has been said that cryptocurrencies like bitcoin are a significant innovation engine. Still, they have also prompted a discussion regarding the energy used and whether they are sustainable.
According to Robert’s discussion, mining cryptocurrencies requires nearly the same amount of power as playing video games, which leads some people to claim that it should not be allowed since it wastes too much energy. However, people who support cryptocurrency mining argue that using a lot of energy is not inherently evil and that, instead, the generation methods used to produce the energy should be the subject of criticism.
The discussion further brings to light issues around the use of energy and the need for a diversified ecosystem of different currencies. Robert believes the economy will be more robust if it does not rely on a single, centralized currency but rather on a diversified ecology of currencies. Just as a biodiverse environment is more resilient, so will our economy be more resilient if it has a diverse ecology of currencies.
In addition, the discussion highlights how essential it is to have faith in the government and privacy in one’s personal life. Others contend that it is not just criminals who need anonymity, even though some people call for strict supervision of cryptocurrencies to prevent their usage by criminals. Ordinary individuals and dissidents prioritize maintaining their anonymity, which is particularly important in nations where the government uses its power to regulate bank accounts and payment systems to repress dissent and harass its adversaries.
On the other hand, the idea that using energy is a chosen excuse to conceal anything that undermines elite power structures cannot be overlooked, as Robert.
The discussion on using energy to mine cryptocurrencies still needs to be completed. It raises crucial considerations regarding sustainability, creativity, and the need for a diversified ecosystem of different currencies. The bitcoin mining tax suggested by the Biden administration may have some positive aspects. Still, it also runs the danger of inhibiting innovation in a sector that can fuel enormous economic expansion.