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> put carbon taxes on BTC/fiat exchanges Almost the best solution that preserves bitcoin, which is: put a tax on BTC mining. The Bitcoin consensus rules rely
by BenoitP 6y ago
> put carbon taxes on BTC/fiat exchanges
Almost the best solution that preserves bitcoin, which is: put a tax on BTC mining.
The Bitcoin consensus rules rely on miners proving their faith in Bitcoin up to the amount of resources they are prepared to (provably) burn. Since this is about 'wasting' resources, having it taxed 99% globally would let the faith proof stay intact while the environmental cost would go down by 100x. You do can 'burn' resources by giving it to your local government. And it would actually benefit the local population.
Caveat: it has to be global, and at about the same rate everywhere. Can it happen without a world government? I don't know. But governments could start to trace transaction compositions up to a distribution over block rewards; and back-collect a tax on them accordingly. That is if they can control transactions; but governments do have a fair amount of leverage over the average joe's daily activity.
But all this presupposes that Bitcoin has gone mainstream and is used in the daily life, and we're definitely not quite there yet.
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On another note, it is a bit sad the article does not mention halvings, which are quite relevant to that topic.