Kentucky bets on Bitcoin mining: 0% tax and cheap energy

Bitcoin mining is a big industry and more and more countries and regions are taking steps to attract bitcoin entrepreneurs.

In the US state of Kentucky, there are a number of politicians who want to attract bitcoin miners with tax-friendly rules, The Block reports. A bill was recently introduced there.

Bitcoin mining in Kentucky
The proposal (PDF) is called AN ACT and deals with the taxation of mining activities.

The two Republican members of the Kentucky House of Representatives, Steven Rudy and Chris Freeland, submitted the 13-page proposal on 8 January.

They want an exception for miners who want to mine bitcoin or other cryptocurrencies Crypto Engine review in their state. These miners will not have to pay a 6% tax on the sale of their BTCs, nor will they have to pay an additional tax on their equipment or energy.

With this plan, the state wants to compete with other American states, such as Texas, which are also committed to mining. Kentucky also enjoys an abundance of electricity, which makes the cost of electricity relatively low.

A large part of the computing power (hashrate) is currently located in China, at least half according to the latest calculations. However, more and more entrepreneurs are opting for a different destination for their data centres, partly due to increasing pressure from the Chinese government.

North America is one of the options. Not only Canada, New York or Texas, but also other states see an opportunity to profile themselves and attract activities.

A miner receives 6.25 BTC per found block. At the current spot price, the yield is then over 215 thousand per block. With a good deal for your hardware and energy you can make good money.

Last weekend the difficulty level for miners was adjusted upwards again.


View more posts from this author