Tag: Income

The Bitcoin mining community has experienced a 50% increase in revenue through mining

by Blockchain News

The linked mining ecosystems have been fighting for their very existence for the last year, and their efforts are starting to pay off as Bitcoin (BTC) begins to show signs of a modest bull run. Mining incentives and transaction fees contributed to an income boost for the Bitcoin mining community that was almost fifty percent higher during the first month of 2023.

Since October 2020, Bitcoin mining income fell below $14 million for the first time on December 28, 2022, when it reached $13.6 million. Because of this, in addition to increasing energy costs caused by geopolitical tensions, mining businesses were put under a significant amount of financial strain, which ultimately led to some of them going out of business.

As indicated in the following graph, the cryptocurrency mining business had a revenue increase of fifty percent measured in terms of United States dollars. This gain occurred as Bitcoin remained in an advantageous position for a sustained recovery.

Within a month’s time, earnings from bitcoin mining almost doubled from its starting point of $15.3 million on January 1 to approximately $23 million.

The hash rate is continually breaking new records as more miners join the effort to provide power to and ensure the safety of the decentralised Bitcoin network. At the time this article was written, the Bitcoin hash rate was somewhere in the neighbourhood of 300 exahashes per second.

However, in an effort to find a solution to the problem, efforts are being made to source greener energy to power Bitcoin mining operations. A mining business in Malawi, which is a landlocked nation in southern Africa, has only lately begun tapping into a supply of stranded energy there.

Erik Hersman, co-founder and CEO of Gridless, made the following statement in reference to the initiative’s overall impact: “The power developer had built these powerhouses a few years ago, but they weren’t able to expand to more families because they’re barely profitable and couldn’t afford to buy more metres to connect more families. Now, because of this initiative, they are able to expand to more families.” Because of our agreement, they were able to instantly purchase 200 more metres, which enabled them to connect more households.

In addition, the Bitcoin mining operation has a minimal impact on the surrounding ecosystem since it is entirely powered by hydroelectricity derived from rivers.

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Puerto Rico sees resurgence of interest among crypto rich

by Cointelegraph

The United States territory of Puerto Rico is seeing a resurgence of interest among crypto investors attracted by the fact it doesn’t charge federal income tax and eligible investors can pay zero taxes on their crypto gains.

Under local law Act 22, those who live in Puerto Rico for at least half of the year are exempt from taxes on interest, dividends and capital gains — meaning they can keep most or all of the profits from crypto or other investments without having to renounce U.S. residency.

The popularity of the territory as crypto tax haven was highlighted when news stories emerged that Frances Haugen, the Facebooks whistleblower, had moved to Puerto Rico in March. But it’s been a haven for crypto people for years, including Bitcoin billionaire Puerto Rico who owns a nine bedroom mansion there.

Logan Paul, the social media personality and Cryptozoo founder, moved to the island earlier this year where he rents out a $55,000 a month mansion. Paul told Time Magazine the island’s tax free status was a big part of the appeal:

“In Puerto Rico you’re motivated to do more and make more money because of the implications that come with it.”

Crypto related businesses that have relocated to Puerto Rico in recent years include the hedge fund Pantera Capital from New York and NFT marketplace SuperRare from Silicon Valley. More traditional finance types like legendary hedge fund manager John Paulson have also become residents.

The Puerto Rico Blockchain Trade Association (PRBTA) recently announced the first edition of the Puerto Rico Blockchain Week for December of 2021, which aims to lure more crypto millionaires and investment into the island.

“We seek to connect entrepreneurs with communities in Puerto Rico and educate them on the multiple benefits available in the crypto era,” stated Keiko Yoshino, Executive Director of PRBTA.

The capital migration that crypto is bringing to Puerto Rico is boosting economic growth but comes with drawbacks for locals. Projects like Puertopia, which is a crypto utopian community in San Juan, are blamed for causing housing prices to soar.

Puerto Rico is not the only location competing for crypto dollars.

Related: Friendliest of them all? These could be the best places for crypto

Aiming to attract crypto investors and businesses El Salvador also offers major tax breaks on Bitcoin trading with investors exempt from paying capital gains and income tax on Bitcoin.

Other classic tax havens have a cryptocurrency friendly environment including Switzerland, the Cayman Islands and Malta. St Kitts and Nevis, which is home to “Bitcoin Jesus” Roger Ver, allows savvy crypto investors to avoid taxes and offers a citizenship by investment program and asset protection advantages for crypto millionaires and businesses.

In Portugal crypto traders and miners are exempt from income tax and in Apri the country approved the Digital Transitional Action Plan which will promote the creation of economical areas dedicated to encourage blockchain-based business.