The hearing will be conducted by Trade and Energy Oversight Subcommittee. Although there are not many details, it is presumed that they will mainly address cryptocurrency mining such as Bitcoin Y ethereum, networks with the most used currencies today.
The Trade and Energy Oversight Subcommittee, group attached to the US House of Representatives, scheduled for next January 20 a new hearing in which they will discuss energy consumption and the environmental footprint associated with the operation of networks blockchain.
Hearing on the impact of blockchain
The hearing in question will be entitled “Cleaning up cryptocurrency: The energy impact of Blockchains”, with which it is clear that they will address the aspects associated with the operation of the networks blockchain on which cryptocurrencies work, presumably those that work under the protocol Proof-of-Work (PoW) and have a mining ecosystem such as Bitcoin or Ethereum.
Although there are not many clear details about this hearing or a list of the people who will participate, it is known that this hearing will handle a hybrid modality, since some participants will be in person while others will attend digitally. It is also clear that the meeting will take place in the morning hours in the offices of the building Rayburn House.
The fact that this issue is now being addressed by the Oversight Subcommittee comes since the topic has not prospered adequately in the other Chambers of Congress. This may be the beginning of the path to think about adequate legislation on the subject, since the entity aims to address any activity that is considered problematic, leaving the mining of the most reputable cryptocurrencies in the spotlight.
Electricity consumption and environmental footprint: The problems of cryptocurrencies
According Bitcoin and the main cryptocurrencies have been gaining popularity, the problems associated with electricity consumption and the environmental footprint resulting from carbon emissions have been an issue that has been especially on the table throughout the year 2021.
Perhaps one of the most remarkable points of this situation took place in May 2021, when Elon Musk indicated that Tesla would withdraw support for payments via Bitcoin due to the environmental implications associated with the use of cryptocurrency. This announcement generated a lot of uncertainty in the market, and the impact on the price was such that its price fell sharply the day the decision of the electric car manufacturer was made public.
Since then, given the visibility of the problem, Musk, together with Michael Saylor, founded an organization that would promote the use of renewable energy in mining. Bitcoin, with which they would mitigate the impact generated by the sector and seek greater adoption of digital currency among businesses and entities as long as these conditions are guaranteed in favor of the environment.
For its part, the second digital currency with the highest market capitalization, ethereum, currently working on transitioning its mining system to implement Proof-of-Stake (PoS), a modality that reduces by 99% the electricity consumption associated with the operation of the network, bringing with it improvements both in terms of scalability and low costs for operations.
Angel Di Matteo version / DailyBitcoin
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