• The Biden Administration Will Release a Bitcoin Mining Report in a Few Weeks

  • The Biden administration is interested in the PoW mining business. According to Costa Samaras, the Office of Science and Technology Policy’s (OSTP) principal assistant director for energy, the White House is preparing to release a report on blockchain mining. Samaras observed:

    “It’s important if this is going to be part of our financial system in any meaningful way, that it’s developed responsibly and minimizes total emissions. When we think about digital assets, it has to be a climate and energy conversation.”

    Mining Report to be Released by Biden Administration

    The report is expected to be released in August. According to sources, it would investigate mining-related issues such as the noise pollution produced by mining rigs, the energy effectiveness of various consensus techniques, and more.

    Bryan Daugherty, BSV Blockchain’s Public Policy Director, stated:

    “The growing global focus on Environmental, Social, and (Corporate) Governance, Climate goals and accords, as well as the rising price of energy, have incentivized policymakers to really begin understanding the economic and energy impact of blockchain technology”

    “Reports such as these greatly affect the industry across the board, from innovation to understanding. This is an opportunity to ensure continued leadership from the United States in terms of national security, innovation, and global equity if the committee is educated on the important differences in security between consensus models and the sustainable and scalable capabilities of a correctly implemented Proof of Work protocol,” He added

    The study issued by the Biden administration will have a significant impact on the blockchain and digital asset markets. It will highlight the industry’s benefits and drawbacks, as well as give recommendations for how the sector might grow in the future.

    The energy-intensive mining process, which involves concluding and verifying transactions for Bitcoin, Ethereum, and other decentralized digital tokens, is having an impact on the electric sector, which is already dealing with a number of challenges such as extreme weather conditions, aging wires, a shift to renewable energy sources, and a push to electrify transportation.

    The study, according to Samaras, seeks to delve deeper into views that have either commended or condemned cryptocurrencies as local annoyances and environmental disasters.

    The team plans to analyze the energy efficiency of alternative mining methods, such as proof-of-stake, which is used by other cryptocurrencies and is 99.9% more energy efficient than Bitcoin’s proof-of-work method. Other issues to be considered include neighborhood noise pollution and the energy efficiency of various mining operations.

    PoW Uses A Lot Of Energy

    Mining cryptocurrency uses a significant amount of electricity. According to one measure, the demand for electricity in the bitcoin industry has surged 20-fold over the last five years as more people have filled their digital wallets.

    Mines or mining farms can be formed by stacking millions of servers in warehouses. According to the Cambridge Bitcoin Electricity Consumption Index, they use raw computer power to answer a series of difficult math problems, consuming more electricity annually than Pakistan and Finland combined. According to the index, its yearly global usage is roughly equivalent to the amount of all the lights and televisions in the United States.

    According to the survey, mining in the area increased monthly electricity rates by about $8 for families and $12 for small businesses. According to the analysis, increasing local government tax revenue from mining expansion only partially offset increased resident expenditures.

    More Pressure on a Volatile Industry

    The Biden administration is expected to issue the findings in a few weeks. Legislators hope that by publicizing it, a larger audience will support the implementation of mining restrictions.

    It is yet unclear which government organization will be in charge of enforcing the regulations enacted by Congress. The EPA (Environmental Protection Agency) and other energy sector regulators have made it clear that they will not.

    According to Samaras, Biden’s White House comments will surely put pressure on investors to avoid involvement in or connection with cryptocurrency mining, especially if the activities violate environmental regulations.

    What's your reaction?
    Happy0
    Lol0
    Wow0
    Wtf0
    Sad0
    Angry0
    Rip0