White House Warns That Crypto Mining Is Endangering US Climate Efforts – crypto.news
As an affiliate, we may earn from qualifying purchases. We get commissions for purchases made through links on this website.
Receive $10 in Bitcoin when you buy or sell $100 or more on Coinbase! https://mathisenmarketing.com/coinbase
In a new report released Thursday, the White House Office of Science and Technology Policy urged the United States to conduct a broad study of the energy impact of cryptocurrency mining in order to develop regulations for the industry.
Components of the report
One of the first reactions to US policy is included in the survey. In response to President Joe Biden’s executive order on cryptocurrencies, the agency detailed how it plans to address the environmental impact of cryptocurrencies, including the extent of the damage and how different cryptos vary in their power requirements.
The report urges government agencies such as the Environmental Protection Agency and the Department of Energy to work with state and local governments to pass regulations on the industry’s ecological impacts, such as the amount and source of energy used, noise pollution, water use, and how to generate carbon-free electricity to offset the use of cryptomining.
According to the report, the government should explore implementation options. If these actions do not mitigate the consequences, Congress may introduce laws to limit or prohibit the use of high-energy consensus processes for mining crypto-assets.
According to the magazine, cryptocurrency mining, especially bitcoin (BTC) mining, consumes a significant amount of electricity and jeopardizes the sustainability goals of Americans.
The report also stated: “Global energy production for the crypto-assets with the highest market value totaled 140-±30 million tons of carbon dioxide emissions per year (Mt CO2/y), or about 0.3% of global annual greenhouse gas emissions. .”
Power grids can be at risk
In addition, the Biden administration wants power regulators and grid managers to ban cryptocurrency mining from jeopardizing the reliability of power grids and raising consumers’ energy bills.
Bitcoin miners, on the other hand, argue that they can improve the reliability of power grids by acting as a baseload public that can shut down during times of high demand, as happened this summer during heat waves that affected much of the United States. especially in Texas. In response to this argument, the White House stated that while minimizing this spike during a network emergency is beneficial, increased spikes are often the reason demand is met, creating conflicting motivations between crypto-asset miners and network operators. Crypto resource miners and other demand response participants must be fully transparent about demand response participation and fees.
The White House is also asking for more detailed information on the industry’s use of green energy, arguing that miners who do not use carbon dioxide-emitting electricity do not cause emissions. According to the study, better data is needed to remove the “uncertainty” surrounding the amount of clean energy a company consumes.
A silver lining
It’s fascinating to note that the White House investigation expressed hesitant support for cryptocurrency miners running their rigs on flared and vented methane. With mining companies setting up data centers at natural oil and gas production facilities, this technology has become increasingly popular in recent years.
“While the EPA and the Department of the Interior have proposed new regulations to reduce methane emissions from oil and natural gas processes, crypto-asset mining operations that harvest escaping methane to generate electricity can benefit the environment by displacing potent methane [carbon dioxide] during combustion,” the report said. “However, converting methane to carbon dioxide in mining may be more reliable and efficient.”
Therefore, steam stripping technology may be more useful in reducing methane leaks.