The White House has expressed concern over the environmental impact of crypto asset mining, citing negative spillovers on the environment, quality of life, and electricity grids. To address these costs, the Biden administration has proposed the Digital Asset Mining Energy (DAME) tax, which will gradually increase to 30% and encourage companies to take better account of the harms they impose on society.
Debate Over Comparison to Residential Lighting
The White House has been accused of using deceptive tactics by comparing the electricity used for mining to power consumption for residential lighting. Critics argue that this comparison neglects to account for the benefits provided by applied direct response systems or current research findings. Furthermore, the White House fails to acknowledge the use of renewable energy sources by bitcoin miners or how mining can mitigate flare emissions.
Impact of DAME Tax
The DAME tax is just one example of the Biden administration’s efforts to fight climate change. The White House believes that the tax will encourage crypto miners to pay their fair share of the costs imposed on local communities and the environment. However, some argue that the tax could lead to increased prices for consumers and reduce the amount of clean power available for other uses.
Despite the concerns raised, the White House is committed to addressing the environmental impact of crypto mining and believes that the DAME tax will help to mitigate negative spillovers on the environment, quality of life, and electricity grids. The debate over the tax will likely continue as the Biden administration seeks to balance the economic benefits of crypto asset mining with its environmental costs.