The Biden administration's proposed 30% tax on the use of electricity to mine digital assets is raising concerns among cryptocurrency miners that they could be forced out of the US market.
US miners make up more than 29% of the total number of nodes in the Bitcoin network. However, this percentage could fall if costs increase and other locations become more attractive.
One possible option is the Middle East, where taxes are generally lower, energy is often abundant and environmental regulations are generally less stringent.
The Omani government has invested more than $800 million in cryptocurrency mining operations. The UAE's 400 megawatts of Bitcoin mining capacity represents about 4% of the total global Bitcoin mining capacity, according to data from the Hashrate Index.
If the new electricity tax bill for digital asset mining passes, US miners have two options: hold on to the US market and make the numbers work, or find a new home.
