March 23, 2023

US Government Is Seeking Opinion Of Americans On Energy Usage By Crypto

A government agency in the United States has sought public feedback on BTC’s energy consumption. According to the notice, the stated deadline for submitting responses is the 9th of May, 2022.

Authorities across the globe are becoming more worried about the degree of power consumption by crypto, and the US administration is no exception.

The Biden administration’s department responsible for making policies on matters of science and technology, OSTP, is asking for public feedback on the power consumption of cryptocurrency and how it affects the environment. 

President Biden issued an executive directive at the start of the month that many observers think will have a considerable effect on how the cryptocurrency industry runs. This mandate directed government agencies such as the OSTP to investigate the possible effects of digital currencies on the nation’s financial institution and, concurrently, on its fight against climate change.

The OSTP’s release underlined that virtual currencies that employ a “proof-of-work” mechanism often consume a significant supply of power, which may present a serious problem in the years to come when attempting to tackle climate change. The statement also included information on how it may be utilized to examine the surroundings. Deadline for submitting comments is set for the 9th of May, 2022.

Consumption Of Energy By Proof-of-Work (PoW) Currencies 

Presently, people are aware that cryptocurrency projects utilizing the PoW algorithm have come under growing scrutiny due to their “excessive” power consumption. Governments worldwide have been compelled to intervene in order to better “defend” the ecology.

Lately, the EU had considered prohibiting proof-of-work crypto such as BTC, but this seems to no longer be a subject of debate based on the statement of a lawmaker concerning the MiCA bill. 

That is not to say that all parties involved agreed to the amendment. Erik Thedéen, VC of ESMA (European Securities and Markets Authority), advocated for a prohibition on proof-of-work platforms and recommended that the blockchain technology using the protocol switch to proof-of-stake.

How Much Electricity Does Cryptocurrency Use In Reality?

Some crypto experts and papers have refuted the idea that cryptocurrency mining operations present a significant environmental concern, as numerous detractors have noted.

Rather than that, they think that cryptocurrency mining might result in a better environment by incentivizing miners to seek out more sustainable sources of energy.

This ideology is bolstered by recent developments in the field, including the announcement by large oil corporation ExxonMobil that it will begin mining Bitcoin using surplus natural gas. Despite this, the OSTP’s gathering of public comments will provide further insight on the ecological consequences of mining in the long run.

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