According to the report, the Biden administration is working on a set of policy recommendations on Bitcoin and Crypto’s ultra-high energy consumption and carbon dioxide emissions.
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The fierce energy consumption of the Bitcoin network is being increasingly closely monitored by environmental activists and regulatory agencies around the world. In March, a European Union document expressed the degree of anti-Bitcoin sentiment among officials and their desire to push Bitcoin towards a less energy-intensive mining model, such as Ethereum is heading. I made it clear.
Now that the prices of Bitcoin, Ethereum, and other cryptocurrencies counter economic “hurricanes,” one White House official said when developing digital assets such as Bitcoin and Ethereum, “climate and “Energy” needs to be considered.
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In March, US President Joe Biden signed a presidential order for cryptocurrencies that are expected to be Bitcoin. .. .. [+]
“If this becomes part of our financial system in any meaningful way, it’s important to develop it responsibly and minimize total emissions,” said the White House Office of Science and Technology Policy. Costa Samaras, Chief Assistant to Energy, said. Bloomberg method.. “When we think of digital assets, it must be a conversation between climate and energy.”
According to Samaras, the study, which is reported to “dig into” both the positive and negative aspects of Bitcoin and cryptocurrencies, will be released in August.
“We’ve seen reports of noise, pollution in the area, and the resumption of old fossil generators in the community,” Samaras said. “These are not trivial loads.”
Last year, strict Bitcoin, Ethereum and cryptocurrency crackdowns in China caused Chinese miners to flee abroad, causing a disastrous price plunge that wiped out trillions of dollars from the crypto market.
Bitcoin and other similar cryptocurrencies that use the so-called proof of work consensus mechanism require large amounts of energy that have increased dramatically in recent years as the technology has become more common and the price of Bitcoin has skyrocketed. .. Bitcoin miners validate transactions by protecting the network and directing computing power to the network in exchange for newly created coins.
As the price of Bitcoin soars, so does the power demand of the Bitcoin network, the process of protecting the network, confirming transactions, and coining new coins that are expected to use the same amount of power each year as some small countries. there is.
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Bitcoin prices fluctuated significantly last year on Ethereum and other smaller ones .. .. [+]
Ethereum, the second largest cryptocurrency after Bitcoin, has begun the process of moving to a less energy-intensive proof of stake mining model. coin. The long-awaited upgrade of Ethereum started at the end of last year and may be completed in a few months.
“In a world that has transitioned to proof of stake, or a world where proof of work and proof of stake continue to coexist, we need to think about what the right policy response will be,” Samaras said. rice field. “Proof of work consumes a lot of energy by design, but it also improves security.”
This report follows President Joe Biden’s March presidential directive, which directed federal agencies to capture the fast-growing crypto market and industry and publish reports that could guide government policy decisions. It could be the first one.
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