After that, I wondered how much tax they have to pay the government to run the bitcoin mining business but I guess the tax is not that big either.
I believe US treats profit from any cryptocurrency acquired through mining as income tax and the percentages in US go from 10% to 37% which isn't really that low!
Depends if you mine
as a normal person then your income range determines your tax rate of 10%to 37%.
as a self-employed business then your tax rate is 15.3% .
as a corporation then your tax rate is 21% .
Mining as a Business or Corporation allows you to deduct the cost of certain equipment, electricity, repair, and rented space to lessen your tax liability.
Profit = bitcoins mined & sold - (electricity+ repair costs+rented space cost)
The thing most have yet to figure out, is that over the course of a year,
bitcoin mined and sold
< electricity cost alone
It has been unprofitable since ASICS became the norm.
Now up until last Year,
Venture capital money has been making up the difference,
so miners could hold btc and wait for the once in every 5 years that bitcoin is actually profitable for ~6 months and sell during those months.
But now that VC money is gone , and any potential peak price is years away , PoW miners bankruptcy will be monthly occurrence.
This is also going to raise the price of electricity for every Utility user that the miners default on , which will hurt the poorest among us the most.
As the Electric Utility Users get stuck for the unpaid PoW miners energy bills.
