the pow mining sector is of interest to the biden administration. The White House is preparing to release a report on blockchain mining, according to Costa Samaras, the senior deputy director for energy at the Office of Science and Technology Policy (OSTP). samaras scored:
“If this is going to be part of our financial system in any meaningful way, it is important that it is developed responsibly and minimizes total emissions. when we think about digital assets, it has to be a conversation about climate and energy.”
Reading: Biden mining bitcoin
biden admin will publish mining report
The report is expected to be published in August. it would reportedly examine mining-related concerns such as noise pollution from mining rigs, the energy efficiency of various consensus procedures, and more.
bryan daugherty, director of public policy at bsv blockchain, noted:
“the growing global focus on environmental, social and (corporate) governance, climate goals and agreements, as well as rising energy prices, have spurred policymakers to really start to understand the economic and energy impact of blockchain technology”
“reports like these greatly affect the industry in everything from innovation to understanding. This is an opportunity to ensure the continued leadership of the United States in terms of national security, innovation, and global equity if the committee is informed about the important differences in security between consensus models and the sustainable and scalable capabilities of a proof of work. implemented correctly. protocol”, he added
The biden administration report will have a major impact on the blockchain and digital asset markets. will emphasize the advantages and disadvantages of the industry and make some suggestions on how the sector can develop in the future.
The energy-intensive process of mining, which involves concluding and verifying transactions of bitcoin, ethereum and other decentralized digital tokens, is having an impact on the electricity sector, which is already facing a number of challenges, such as extreme weather conditions. , aging cables, a switch to renewable energy sources, and a push to electrify transportation.
according to samaras, the study tries to delve into the arguments that have praised or criticized cryptocurrencies as local nuisances and environmental disasters.
The team intends to compare the energy efficiency of various mining methods, such as proof-of-stake, which is used in other cryptocurrencies and is 99% more energy efficient, with the proof-of-stake method. of bitcoin work. Other issues to be evaluated include local noise pollution and the energy efficiency of using different mining techniques.
related reading | Iran to Shut Down Crypto Mining Farms as Energy Crisis Deepens
pow consumes a lot of energy
Cryptocurrency mining consumes a lot of electricity. one indicator shows that over the last five years, the demand for electricity in the cryptocurrency business increased 20-fold as more people filled their digital wallets.
Millions of servers can be stacked in warehouses to form mines or mining farms. According to the Cambridge Bitcoin Electricity Consumption Index, they use raw computational power to solve a number of challenging arithmetic problems, consuming more electricity annually than several individual countries, including Pakistan and Finland. The index estimates that their annual global usage is roughly equivalent to the sum of all lights and televisions in the United States.
According to the report, which was released last year, mining in the area increased monthly electricity costs by about $8 for families and $12 for small businesses. According to the report, increased local government tax collections from mining expansion only partially covered increased spending by residents.
more pressure on the turbulent industry
In a few weeks, the biden administration is expected to release the report. legislators hope that by publishing it, a broader audience will support the adoption of regulations governing mining operations.
It is not yet clear which government entity will be in charge of carrying out the regulations authorized by Congress. As of now, it is clear that the EPA (Environmental Protection Agency) and other regulators in the energy sector will not.
according to samaras, the biden white house suggestions will undoubtedly put pressure on investors to avoid getting involved or connected with cryptocurrency mining, particularly if the operations do not adhere to environmental standards.
related reading | bitcoin mining facilities closed after a sharp drop in miner profitability