An energy team of the White House is drafting a policy recommendations report to address issues concerning cryptocurrency mining’s energy consumption and emissions, according to a report by Bloomberg Law.
The policy report, expected in August, could be one of the first case studies of the impact of mining after U.S. President Joe Biden issued the executive order in March.
Costa Samaras, principal assistant director for energy for the White House Office of Science and Technology Policy, told Bloomberg Law:
“It’s important if this is going to be part of our financial system in any meaningful way, that it’s developed responsibly and minimizes total emissions. When we think about digital assets, it has to be a climate and energy conversation.”
The report aims to investigate all claims surrounding the cryptocurrency mining industry, including assertions that mining can bring societal benefit. At the same time, it also includes claims that crypto mining is a local nuisance and a climate disaster.
Samaras said the energy team will also look into claims that mining farms can provide electricity grid operators with flexibility by agreeing to shut down when demand peaks.
The scope of the study also includes local noise pollution and the energy efficiency of different consensus methods — proof-of-work (PoW) versus proof-of-stake (PoS).
Samaras, who is part of the energy team drafting the report, said:
“We’ve seen reports about noise, local pollution, older fossil generators being restarted in communities. These are not trivial loads.”
Cryptocurrency mining refers to the process of verifying transactions and adding them to the blockchain. The PoW mining mechanism requires solving complex computational problems using computers, which require electricity. Therefore, it is almost 99% more energy-intensive than PoS.
According to the Bloomberg Law report, the crypto industry’s demand for…
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