Amidst the tense discussion climate, the US White House has published a new report hostile to the mining industry. The reason is that cryptocurrency mining produces “too many” greenhouse gases. This is harmful to the environment, but not only. In fact, the report says it’s about fighting climate change and “preserving the environment, health, ecosystem and infrastructure, etc., etc.”
It should also be noted that this report appeared on demand after the executive order signed on March 9, 2022 by US President Joe Biden. It called for action to ensure “responsible development of digital assets, consistent with our goals to combat climate change, and for the benefit of all Americans.”
At the beginning of the report, it is explained that the mining industry produces too many greenhouse gas emissions and consumes too much energy. According to the figures (which came from nowhere), by August 2023, the industry will consume “more than 120 and 240 billion kilowatt-hours of electricity per year.” This is really not so little.
As a result, injunctions are imposed on cryptocurrency mining farms and, in particular, Bitcoin (BTC). They are instructed to use all possible means to reduce their impact on the climate and volumes of energy consumption. To achieve this goal, miners will be able to seek help from government agencies. For example, from the Department of Energy or the US Environmental Protection Agency.
In addition, it is stated that there will be a massive collection of data on mining activities. This is necessary to compile statistics and accurately determine the amount of energy used for these purposes.
Is it possible to ban mining?
Unfortunately, for mining farms in the USA, the report says that if miners do not step up their efforts (i.e., they do not sharply reduce consumption, do not switch, for example, to “green” energy), then it is very likely that the decision to ban mining will be made at the federal level. Such a measure will inevitably lead to the outflow of American miners, as we have already seen from China, to countries such as Kazakhstan, the USA and Russia.
“If these measures prove ineffective to reduce the impact, the administration should explore the possibility of taking executive action. Congress could consider legislation limiting or excluding the use of energy-intensive consensus mechanisms for mining cryptocurrencies”.
Finally, the report reminds us that The Merge (Ethereum’s transition from an energy-intensive PoW system to a PoS system, scheduled for next week) helps reduce the carbon footprint created by the crypto ecosystem. This suggests that, referring to the “efforts of miners” after the “Merger”, American politicians strongly encourage this type of transition. Although other solutions are possible.