The arrival of energy-intensive Bitcoin mining will only add pressure to an overstretched grid. Other parts of the nation are also grappling with a growing energy deficit.įrom 2023 to 2027, California and the Midwest are expected to face a high risk of electricity shortages, while the Southwest, Northwest, New England and Texas have sufficient energy and capacity under normal circumstances but could experience shortfalls during severe conditions. Texas, where many of the country’s crypto mining outfits call home, sits on a power grid that is vulnerable to extreme weather fluctuations. Nuclear generating capacity is due to retire through 2027, with another 22 gigawatts possibly being slashed, according to the North American Electric Reliability Corporation. is over.Īmerica’s power grid is old and in dire need of updates. But it would be unwise to believe that scrutiny of their energy demands in the U.S. While the Digital Asset Mining Energy bill appears to be no more, American crypto miners may be feeling a sense of relief. lawmakers on the debt ceiling bill is expected to take place next Wednesday. states, including Arkansas, Montana and Texas have been more welcoming toward crypto miners, proposing legislation that would protect Bitcoin mining firms from discriminatory taxes and regulation. Despite the Biden administration’s stance, some U.S.crypto miner, climbed by 7.1% since last week11.5% for the past month. Shares of Marathon Digital Holdings, another U.S. Shares of Riot Platforms on Nasdaq rose by 8.9% over the past week and were up by 14% since May 1.Treasury Department’s budget for this year, citing “negative spillovers” from the cryptocurrency industry to justify the tax. The Biden administration in March proposed the “Digital Asset Mining Energy excise tax” as part of the U.S.“Yes, one of the victories is blocking proposed taxes,” Davidson tweeted, in response to a separate tweet from Pierre Rochard, vice-president of research at U.S.-based Bitcoin mining firm Riot Platforms.This tax would have amounted to 30% of the power cost incurred by miners. In a subsequent tweet, Davidson clarified that the bill no longer includes a tax on cryptocurrency miners, which was originally proposed by the Biden administration.But China is seeking to participate in these new technologies regardless and, more importantly, learn by doing. It is exploring how it will engage with the rest of the world, while for its own citizens on the mainland, there will be no such allowances when it comes to freedom of capital and how money moves. Make no mistake, what’s happening in Hong Kong as its financial regulatory body, the Securities and Futures Commission, releases its rules on virtual asset service providers this week, is also a reflection of China’s goals. There is movement afoot.Īnd it comes at a time that is significant for developments for the industry as it seeks to monetize innovation. Beijing, the capital city of China, just released its Web3 whitepaper that outlines its supportive thinking on the metaverse and NFTs. While crypto remains banned in China, the underlying technology of blockchain remains key. Meanwhile in China, there are mandated and government-supported moves into investing in Web3 and metaverse opportunities. There is room for discourse, disagreement and inconsistencies - even between federal and state levels. But in a country where states have a high degree of autonomy, many states are leaning into the growth opportunity and welcoming the potential cash flow. (for now) likely are breathing a sigh of relief as the proposed 30% excise tax on power usage was removed. grapples with its debt ceiling, some compromises were made to get a deal done so America can pay its bills. And we’re seeing that play out in the top stories in Web3 this week.Īs the U.S. Its laissez-faire growth is increasingly managed once there’s critical mass. But how it evolves as it matures is very much guided by the powers that be: either capital or political.
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |