The PoW mining sector is of interest to the Biden administration. The White House is preparing to publish a report on blockchain mining, according to Costa Samaras, the Chief Deputy Director of Energy at the Office of Science and Technology Policy (OSTP). Samara noted:
“It matters if this will be part of our financial system in a meaningful way, that it is developed responsibly and minimizes total emissions. When we think of digital resources, it has to be a conversation about climate and energy. “
Biden administrator will release the mining report
The report is expected to be published in August. According to reports, it would look into mining-related concerns such as noise pollution from mining rigs, the energy effectiveness of various consent procedures, and more.
Bryan Daugherty, Director of Public Policy for BSV Blockchain, noted:
“The growing global focus on environmental, social and (corporate) governance, climate goals and deals, as well as rising energy prices, have incentivized policymakers to really start understanding the economic and energy impact of technology. blockchain “
“Reports like these greatly influence the industry across the board, from innovation to understanding. This is an opportunity to ensure continued U.S. leadership in national security, innovation, and global equity if the committee is educated on the important security differences between consensus models and the sustainable and scalable capabilities of a properly Proof of Work. protocol implemented, ”he added
The Biden administration’s report will have a big impact on the blockchain and digital asset markets. He will highlight the advantages and disadvantages of the sector and give some suggestions on how the sector can develop in the future.
The energy-intensive mining process, which involves concluding and verifying transactions for Bitcoin, Ethereum, and other decentralized digital tokens, is impacting the electricity sector, which is already facing a number of challenges such as extreme weather conditions, cables aged, a shift to renewable energy sources and a push to electrify transport.
According to Samaras, the study attempts to delve into topics that have praised or disparaged cryptocurrencies as local nuisances and environmental disasters.
The team intends to compare the energy efficiency of various mining methods, such as proof-of-stake, used by other cryptocurrencies and is over 99% more energy efficient, with Bitcoin’s proof-of-work method. . Other topics to consider include local noise pollution and the energy efficiency of using different mining techniques.
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PoW consumes a lot of energy
Mining cryptocurrencies consumes a lot of electricity. An indicator shows that during the previous five years, the demand for electricity in the cryptocurrency sector has increased 20 times as more people have filled their digital wallets.
BTC/USD Slides below $20k. Source: TradingView
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 computing power to solve a number of challenging arithmetic problems, consuming more electricity per year than several individual countries, including Pakistan and Finland. The index calculates that its annual global usage is roughly equivalent to the sum of all lights and televisions in the United States.
According to report, which was released last year, mining in the area raised monthly electricity costs by about $ 8 for households and $ 12 for small businesses. According to the report, the increase in local government tax collection resulting from the mining expansion only partially covered the increase in expenses for residents.
More pressure on turbulent industry
In a few weeks, the report is expected to be released by the Biden administration. Lawmakers hope that by publishing it, a wider audience will support the adoption of regulations governing mining operations.
It is not yet clear which government agency will be in charge of executing the regulations authorized by Congress. As of now, it is clear that the EPA (Environmental Protection Agency) and other energy regulators will not.
According to Samaras, Biden’s White House suggestions will undoubtedly put pressure on investors to avoid involvement or connection with cryptocurrency mining, particularly if operations fail to comply with environmental rules.
Related reading | The Bitcoin mining facility was closed following a sharp decline in miners’ profitability
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