crypto strategy

White House: Bitcoin Mining Must Be Greener, Or The US Should Ban It CryptoBlog

The White House today suggested that US lawmakers and regulators may soon crack down on cryptocurrency mining because of its large carbon footprint.

In a Thursday report, commissioned by President Biden in a Executive Decree in March, the White House Office of Science and Technology Policy said crypto miners are expected to reduce greenhouse gas emissions, with help from the Environmental Protection Agency (EPA), Department of Energy (DOE), and other federal agencies.

He proposed that the government collect more energy consumption data from industry, advance energy efficiency standards and encourage “the use of environmentally friendly crypto-asset technologies.”

But the White House has also gone so far as to say that if measures to make mining greener don’t work, energy-intensive crypto mining, namely Bitcoincould be totally prohibited.

“If these measures prove ineffective in reducing impacts, the administration should explore executive branch actions, and Congress could consider legislation, to limit or eliminate the use of energy-intensive consensus mechanisms for the ‘crypto-asset mining’,” the report said.

Mining cryptocurrencies like Bitcoin uses huge amounts of energy: in order to verify blocks of transactions on blockchains, a lot of computing power is needed. Extraction is therefore often carried out on an industrial scale.

And the United States is now a Bitcoin mining hotspot. After China cracked down on the industry, mining operations flowed into North America: Today’s report adds that the US share of global Bitcoin mining fell from 3.5% in 2020 to 38% now.

This could hamper U.S. “climate commitments and goals,” the report said.

In March, President Joe Biden sign an executive order to establish a comprehensive strategy for the US government to regulate the crypto industry, including mining.

Today’s report also noted the difference between proof-of-work and proof-of-stake blockchains – and mentioned the long-awaited upgrade to Ethereum, known as “fusion.”

Next week, Ethereum, the second-largest cryptocurrency by market capitalization, is expected to move to proof-of-stake, making it 99% more energy efficientaccording to the Ethereum Foundation.

“There have been more and more calls for [proof-of-work] blockchains to adopt less energy-intensive consensus mechanisms,” he said. “The biggest reaction was Ethereum’s promised launch of “Ethereum 2.0,” which uses a [proof-of-stake] consensus mechanism.

Some experts, including prominent Bitcoiner and head of growth marketing at Kraken Dan Held, have said once the Ethereum upgrade is complete, Bitcoin’s high energy consumption will be more in the spotlight.

Stay up to date with crypto news, get daily updates in your inbox.

#White #House #Bitcoin #Mining #Greener #Ban #CryptoBlog #crypto strategy

Related Articles

Back to top button