Post
Topic
Board Bitcoin Discussion
Merits 4 from 1 user
Re: Tax on mining due to climate change.
by
Enkel
on 02/02/2014, 21:25:01 UTC
⭐ Merited by coinjack1337 (4)

A special climate tax in the comming years will spoil the bitcoin market.
Electricity needs will skyrocket. So will the tax on electricity.
This is a logical scenario?

I think you over estimate how large the bitcion market is (or will be in the near future) compared to the butt load of energy used to maintain massive server farms in support of the existing fiat currency economy. Saying that climate tax would spoil the bicoin market is about as true as saying that it will cause ATMs to be shuttered and hauled off the the recycle plants. Any tax on energy is going to affect far more commerce than bitcoin could even hope to impact. Imagine just the energy used in refrigeration, do you think grocery stores will suddenly stop selling ice cream and frozen dinners? Will butchers suddenly throw their hands up and go find other jobs?

The fact is that electricity companies have a captive market and they use that to their advantage (at least in the US). That's why states are paying millions to electricity generation companies to cover their costs to move from coal to LNG. Even though the move to gas will save those companies money because their coal contracts are running out, the legislators are more than happy to cry "oh, 200 jobs!, we MUST give them the 30 million to convert!". Those companies are booking record profits, but can't afford to do their own upgrades?  Not in the least, why pay for your own company when you're bought-and-paid-for politician will hand you the money from the taxpayer's wallet.