The Biden administration publishes Bitcoin Mining report

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 Office of Science and Technology Policy (OSTP)’s top assistant director of energy. Samaras notes:

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

Biden Admin will issue a mining report

The report is expected to be published in August. According to reports, it will investigate mining-related concerns such as noise pollution produced by mining rigs, the energy efficiency of various consensus 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 agreements, as well as the rising price of energy, has encouraged decision-makers to truly begin to understand 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 US leadership in national security, innovation and global justice if the committee is educated on the important differences in security between consensus models and the sustainable and scalable properties of a properly implemented Proof of Work protocol, “he added

The Biden administration’s report will have a major impact on blockchain and digital asset markets. It will emphasize the advantages and disadvantages of the industry and make 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, has an impact on the electrical sector, which is already facing a number of challenges such as extreme weather conditions, aging wires, a transition to renewable energy sources. and a pressure to electrify transportation.

According to Samaras, the study seeks to delve deeper into arguments that have either hailed or condemned cryptocurrencies such as local annoyances 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 more than 99 percent more energy-efficient, with Bitcoin’s proof-of-work method. Other topics to be evaluated include local noise pollution and energy efficiency using various mining techniques.

Related reading | Iran will close down crypto-mining farms as the energy crisis deepens

PoW uses a lot of power

Mining of cryptocurrencies uses a lot of electricity. An indicator shows that over the past five years, the demand for electricity in the cryptocurrency business has increased 20 times as more people have filled up 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, and consume more electricity annually than several individual countries, including Pakistan and Finland. The index calculates that the annual global use corresponds to approximately the sum of all the lights and TVs in the United States.

According to the report, which was released last year, mining in the area increased monthly electricity costs by around $ 8 for families and $ 12 for small businesses. According to the report, the increased municipal tax collection from the mine expansion only partially covered the increased expenses for the inhabitants.

More pressure on turbulent industry

In a few weeks, the report is expected to be published by the Biden administration. Lawmakers hope that by publishing it, a wider audience will support the adoption of regulations governing mining.

It is still unclear which state entity will be responsible for implementing the regulations approved by Congress. As of now, it is clear that the EPA (Environmental Protection Agency) and other energy sector regulators will not do so.

According to Samaras, Bidens Hvite Hus’ proposal will undoubtedly put pressure on investors to avoid involvement in or connection with the mining of cryptocurrency, especially if the operations do not comply with environmental regulations.

Related reading | Bitcoin mining plant closed after sharp decline in mining profitability

Featured image from Getty images, chart from TradingView.com