The Biden administration is contemplating pressing for a ban on cryptocurrency mining if efforts to reduce carbon emissions and power use prove fruitless.
According to a recent report, the White House has criticized Bitcoin and other Proof-of-Work cryptocurrencies for their excessive energy usage and their environmental impact.
Due to bitcoin mining’s reliance on grid-purchased power, according to the paper, this might disrupt the usual distribution of electricity to U.S. homes. Air pollution from fossil fuel combustion, noise from mining facilities, thermal water pollution from power plant cooling, and solid waste from mining facilities also posed a threat to the environment and human health.
Bitcoin and Ethereum, the two largest PoW cryptocurrencies, accounted for around 60% to 77% and 20% to 39% of total worldwide crypto-asset electricity use, respectively, according to the analysis. In addition, it was estimated that overall crypto mining operations in the United States contributed between 0.4% and 0.8% of total US carbon emissions. According to the analysis, this is comparable to emissions from diesel fuel used by railways in the United States.
In its suggestions, the White House lauded Proof of Stake blockchains, highlighting Ethereum’s imminent merge event in particular.
“Proof of Stake (PoS), an alternative, less energy-intensive consensus method, was expected to use up to 0.28 billion kilowatt-hours per year in 2021, or less than 0.001% of world power consumption. Examine the report. “
The White House has also urged for responsible development and cooperation to set norms for extremely low energy intensity, low water consumption, low noise production, and operators’ use of clean energy. However, it cautioned that should these restrictions prove ineffective, further administrative steps, such as the prohibition of cryptocurrency mining, may be considered.
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