Crypto

White House: PoW for Bitcoin must be greener or it will be banned – CryptoActu

As the Ethereum blockchain enters the finish line before the merger, Proof of Work (PoW) technology is making headlines again. And as always, this topic was approached with suspicion. With the main purpose – even if it is not always clearly mentioned – Bitcoin (BTC). And its power consumption seems catastrophic when compared with others that have nothing to do with it. This time the conclusion is from a report commissioned by the White House of the United States. And unless PoW gets greener, it will have to mine its BTC elsewhere…

Unfortunately, there is nothing new in such an initiative, because at the beginning of the year Europe already tried its luck with the Proof of Work ban. This is part of his MiCA bill, the main purpose of which seems to be to ban and harm the cryptocurrency industry. But with official goals that are cloaked in “investor protection” and “environment” that we would like to be enforced by the governments themselves.

Teachings that the White House nevertheless repeats in early September. This follows the publication of a report titled “Climate and Energy Impacts of Crypto Assets in the United States”. The latter was sanctioned by President Biden himself as part of a March executive order. And prepared by the Office of Science and Technology Policy of the White House, which only yesterday, at the end of the day, officially announced this.

Mining

Bitcoin is a mining industry that uses 60% renewable energy

Hugh B. – July 20, 2022 – 13:00

Criticism about Bitcoin’s power consumption […]

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Bitcoin Mining – Greener or Something Else…

And, generally speaking, this report is clearly not very favorable for Bitcoin. However, this does not necessarily close the door to the mining industry, whose US installed share has increased from 3.5% in 2020 to 38% now. This largely follows the forcible expulsion of BTC miners from China last year. Because what the White House Office of Science and Technology Policy document requires is ultimately quite simple and, let’s be honest, perfectly legal.

Indeed, the main instruction set out in this paper is to effectively and significantly reduce the greenhouse gas emissions associated with cryptocurrency mining. And this is supported by the Environmental Protection Agency (EPA), the Department of Energy (DOE) and other federal agencies. Thus, it is not about blind European-style suppression, but rather support… even if defeat seems unthinkable! And then things get a lot more complicated.

“If these measures prove ineffective in reducing the impact, the administration should look into executive measures. And Congress could consider legislation to limit or exclude the use of energy-intensive consensus mechanisms for mining cryptoassets. »

White House

Bitcoin Mining – “Probably Helps, Not Hinders”

However, as the Documenting Bitcoin Twitter account very aptly points out, this report is not all that negative. Because the people responsible for writing this paper are making a point that could very well be in favor of Bitcoin. After all, according to the latter, the development of the mining industry associated with cryptocurrencies may well have a positive impact on the “construction of additional renewable energy capacities.”

“Bitcoin can “incentivize the construction of additional renewable energy capacity” and “likely to help, not hinder, US climate goals” by reducing methane emissions!”

Bitcoin Documentation

This is at odds with Sweden, which last November tried to justify a possible PoW ban, even – or especially – if the electricity used came from sustainable sources. Don’t try to figure it out, it might confuse your brain…

Mining

Crypto mining – US lawmakers demand accountability

Hugh B. – August 19, 2022 – 13:30

Decidedly, lawmakers seem to be applying the corpse strategy […]

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The issue raised to justify these decisions is that this cryptocurrency mining industry could interfere with the “climate commitments and goals” of the United States. But at the same time, its expansion could well have had the opposite effect. That’s why the report points out that the government will first have to collect more data on the actual energy consumption of the industry.

And the real question is whether this will be done independently or dependently, as is often the case when it comes to bitcoin and cryptocurrencies. Because the issue is not always as environmentally friendly as it seems…

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