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Sure you can, what is called "Proof of work" in the context of Bitcoin is actually "Proof of money lost" in the form of paid electricity. If you taxed mining at
by RedNifre 3y ago
Sure you can, what is called "Proof of work" in the context of Bitcoin is actually "Proof of money lost" in the form of paid electricity. If you taxed mining at 90%, you would also reduce mining and thus electricity consumption by 90%.
(Ideally, this would be a global tax and not too high, since reducing mining too much would compromise security)
- Detrytus 3y agoRelying on taxes instead of Proof of Work kind of goes against core premise of Bitcoin: not relying on centralized authority. To make sure that all miners pay taxes you need tax office to collect them. And of course some criminal miners would find a way to avoid those taxes, making it 90% cheaper for them to mount 51% attack.