USA: White House prepares policies to combat environmental impact of Bitcoin mining – DiarioBitcoin

USA: White House prepares policies to combat environmental impact of Bitcoin mining - DiarioBitcoin

USA: White House prepares policies to combat environmental impact of Bitcoin mining - DiarioBitcoin By DailyBitcoin Editor

The Joe Biden administration is preparing a policy document to combat the environmental impact of Bitcoin mining in the United States.

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  • White House seeks to reduce environmental impact of crypto mining
  • Bitcoin mining may threaten US climate goals
  • The electricity demand of crypto mining has increased 20 times in 5 years.

The administration of US President Joe Biden is preparing policy recommendations to reduce the energy consumption and emissions footprint of cryptocurrency mining. While some states like New York have passed specific legislation on crypto mining, this new government initiative would mark the first great incursion of the White House (that is, of the National Executive Power) in an industry that some critics say threatens US climate goals and strains the country’s power grid.

It must be remembered that the United States is currently the country with the most crypto mining in the world. It is followed by China, a nation in which it is still active despite the ban.

“It is important, if this is going to be part of our financial system in any meaningful way, that it is developed responsibly and minimizes total emissions”said Costa Samaras, principal deputy director for energy at the Office of Science and Technology Policy from the White House.

“When we think about digital assets, it has to be a conversation about climate and energy”, Samaras added, according to reports Bloomberg.

for august this year

The White House report, expected in August 2022, could be one of the first studies following President Joe Biden’s cryptocurrency executive order in March pressuring federal agencies to ensure “responsible” mining of digital assets. like cryptocurrencies. But it is not yet clear if any political action follows the recommendations.

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The White House study would aim to delve into claims that have promoted cryptocurrency as a social benefit or criticized it as a local nuisance and climate nightmare, Samaras said.

The team plans to assess everything from local noise pollution to the energy efficiency of using different mining techniques, comparing the test-of-work technique of Bitcoin with proof of stake, which is used by other cryptocurrencies and is over 99% more energy efficient.

“We’ve seen reports about noise, local pollution, restarting older fossil generators in communities,” Samaras said. “These are not trivial charges.”

However, some see the role of the federal government seeking to pressure crypto miners to clean up their operations.

“I have a hard time seeing any kind of approach,” said Jesse Morris, CEO of Energy Web, a technology company that works with utilities and consumers to accelerate decarbonization. “I think the biggest bang for your buck will be Bitcoin mining education and outreach, and that would also send a great signal.”

Last month, Energy Web unveiled a scoring system that would show how well miners Bitcoin, and other potential industries, are using their consumption to generate lower emissions.

Energy and cryptocurrencies

This year, ethereum is planning a switch from proof-of-work to proof-of-stake, which would drastically reduce energy use. Nevertheless, Bitcoin, despite public campaigns calling for it to do the same, it has not announced plans to do so. The decentralized nature of the blockchain Bitcoin means the participation of a diverse group of miners, who last year earned more than USD $15 billion, according to data from TheBlockResearch, shared by Bloomberg.

As more people have filled their digital wallets, the cryptocurrency industry has seen a 20-fold boom in electricity demand in the past five years, shares Bloomberg.

According to him Cambridge Bitcoin Electricity Consumption Index, the global annual consumption of mining Bitcoin is roughly equal to all the lights and TVs in the US combined.

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Therefore, the “first” thing the White House should address is measure the scale of the industrysays Matteo Benetton, a finance professor at the University of California, Berkeley, who co-authored a report on cryptocurrency mining in upstate New York. The study, published last year, found that mining in the region increased monthly electricity bills by about $8 for households and $12 for small businesses. According to the study, increases in local government tax revenue from mining development offset only about 15% of the elevated costs to locals.

Open minded

The White House energy team will keep an open mind as it collects evidence, Samaras said.

“We need to think about what the appropriate policy responses would be in a world that switched to proof-of-stake, or a world that has an ongoing mix of proof-of-work and proof-of-stake,” Samaras said. “Proof-of-work is very energy-intensive by design, but it also increases security.”

The team will study claims made in recent months, in places like Texas, that mining facilities could give grid operators flexibility by agreeing to temporarily shut down during times of peak demand.

A central question, Samaras said, concerns to the financial incentive for miners to shut down their servers, given the opportunity to make money running all the time.

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“We have seen miners establish themselves in places where electricity prices are low and have obtained favorable industrial rates”, said. “I would like to go see the evidence that a maximum mining fee in the afternoon slows down mining operations.”

Sources: Bloomberg Law, finbold, File, Archive

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WARNING: This is an informative article. DiarioBitcoin is a means of communication, it does not promote, endorse or recommend any investment in particular. It is worth noting that investments in crypto assets are not regulated in some countries. May not be suitable for retail investors as the full amount invested could be lost. Check the laws of your country before investing.

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