Bitcoin Miner GoMining Reacts To Narrowly Avoiding Biden's 30% Tax

On May 28, U.S. lawmakers released a draft of a bill allowing the U.S. to increase its debt ceiling. This bill also included a number of add-on taxes, such as the Digital Assets Mining Energy (DAME) excise tax which proposed taxing crypto miners 10% of the cost of the electricity used for Bitcoin BTC/USD mining in 2024, with the plan to increase to 30% in 2026.

Ohio Rep. Warren Davidson said the tax had been dropped from the bill, leaving Bitcoin miners in the U.S. safe for the time being.

Benzinga spoke with Mark Zalan, the CEO of GoMining and a 20-year veteran in tech and finance, regarding his insights on the current state and future of the crypto mining industry and how user sentiment and U.S. regulation can impact the industry.

BZ: What do people fundamentally misunderstand about Bitcoin mining?

Zalan: One fundamental misunderstanding people have about Bitcoin mining is that it's just a simple task of running computers to solve complex algorithms and earn Bitcoin.

Mining is a highly competitive and constantly evolving industry, requiring a deep understanding of hardware, software and market trends. There's always the risk of sudden changes in the mining difficulty or the price of Bitcoin, which can drastically affect profitability. It's not just a set-it-and-forget-it operation.

BZ: How have attitudes towards mining evolved during your years of experience in the industry?

Zalan: Initially, mining was seen as a niche activity reserved for a select group of tech enthusiasts. It is now viewed as a critical part of the blockchain infrastructure.

The rise of NFTs has provided new opportunities for miners to generate revenue and for users to participate in mining in unique ways.

BZ: What do you think of the Biden administration’s plan to tax BTC mining 30% in the U.S.? Will it impact GoMining’s operation?

Zalan: We always keep an eye on various global regulatory developments that may have an impact on our business.

It's unfortunate that there's no common ground on crypto regulations worldwide, and this makes it challenging for the industry to thrive. A unified and understandable set of rules would benefit the industry, allowing us to operate with more certainty and stability.

We hope that regulators worldwide will recognize the potential of blockchain technology and cryptocurrencies and work towards developing a framework that benefits all stakeholders involved.

BZ: Do miners need a more public-facing image to offset negative perceptions? Is that the reason for the GoMining rebrand?

Zalan: We believe that it's important for miners to have a more public-facing image to counteract the negative perceptions. That's why we decided to rebrand as GoMining and present ourselves as a more approachable and transparent brand.

However, our focus is not just on image but on real-world impact as well. We have data centers located in various countries such as UAE, Norway and Kazakhstan, where we comply with local laws and regulations.

Behind every NFT and every mining entity, there is real hardware and a team of experts working to ensure the efficiency and profitability of the operation.

BZ: What is the future of BTC mining? What is needed to make mining "cool" again?

Zalan: The demand for Bitcoin is not going away anytime soon, so mining will continue to be a vital part of the network. As for making mining "cool" again, well, that's a tough one. But at GoMining, we are a team of true Bitcoin believers, and we believe that by continuing to innovate and push the boundaries of what's possible with mining, we can help drive adoption and interest in the industry.

BZ: How has GoMining combined mining with NFTs/and a yield-bearing token? Is this just a way of rewarding investors?

Zalan: Mining and NFTs is a match made in crypto heaven. By combining mining with NFTs and yield-bearing tokens, we are able to offer unique opportunities for users to engage with the world of cryptocurrency and potentially benefit from its growth.

 

Benzinga reported that diminishing profit margins over recent weeks may drive continued liquidation. According to Matrixport, the recent market pressure on Bitcoin around the $28,000 level is likely caused by miners having to sell off their recently acquired assets.

Bitcoin mining has been under fire as the epicenter of mainstream politicians’ concerns over energy usage. It seems fair that offering the chance for rewards will bring in more mainstream investors, but ultimately mining operations will need to go out of their way to address energy concerns to avoid the kind of taxation and censoring they narrowly avoided with the Biden bill.