The Week in Crypto – America, Balaji Srinivasan, and Bhutan

Reading Time: 2 minutes

This week in the crypto world we’ve seen a US crypto mining tax proposed, Balaji Srinivasan bail on his $1 million Bitcoin bet, and Bhutan reveal a surprise history of Bitcoin mining.

Let’s dig in.

Joe Biden Proposes 30% Tax on Crypto Miners

US President Joe Biden this week unveiled the Digital Asset Mining Energy (DAME) excise tax which would see proof-of-work miners face a tax equal to 30% of the cost of the electricity they use in their activities.

Biden’s office said that the DAME tax was a way of encouraging crypto mining firms “to start taking better account of the harms they impose on society”, which allegedly include higher energy prices for everyone and environmental damage.

However, critics have already suggested that such a tax wouldn’t solve anything, and would instead push Bitcoin mining into regions where there is even less oversight.

Balaji Srinivasan Bails on $1 Million Bitcoin Bet

Former Coinbase CTO Balaji Srinivasan this week settled his famous $1 million Bitcoin bet and donated $1.5 million to three charitable entities after considering his point made. Srinivasan was discussing the devaluation of the US dollar in March when he made a wager that the price of Bitcoin would hit $1 million by the middle of June.

However, with more than a month to go Srinivasan and his point about the economy seemingly taken on board he has closed out his bet, with three charities benefitting as a result.

Bhutan Reveals Public Bitcoin Mining Operation

The Kingdom of Bhutan this week confirmed that it has been mining Bitcoin since 2020 following an investigation by Forbes. The outlet reported over the weekend that the country, which was recently revealed to have become the first to hold cryptocurrencies as part of its sovereign wealth investments, has been using its plentiful hydroelectricity to mine Bitcoin for the past three years or so.

This means that the country joins El Salvador in the list of sovereign miners, beating the South American country by at least a year.