Bitcoin (BTC) would have too high a carbon cost, according to a report from the White House. As a result, she recommends encouraging miners to use greener sources of energy… Or face a possible ban.
A report on the ecological cost of cryptocurrencies
President Joe Biden had requested a report on cryptocurrencies, with a view to framing them more broadly. The White House Office of Science and Technology Policy looked into the matter, and he just published a report.
The latter focuses on the ecological costs of cryptocurrencies, and proof of work in particular. The report recalls that the Bitcoin and Ethereum (ETH) networks together represent 60% of the capitalization of cryptocurrencies. In total, the mining of this type of cryptocurrencies would represent 0.3% of greenhouse gas emissions.
Hence the recommendations of the report: the cryptocurrency sector must reduce its impact, and we must encourage the players to use “greener” consensus methods.
👉 On the same subject – Bitcoin (BTC): mining will not exceed 0.9% of global carbon emissions by 2030
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White House considers banning Bitcoin mining
The report makes several suggestions for action, including better oversight of cryptocurrency miners, to “mitigate the impacts” of their activity. With possible real consequences: the White House report is considering an outright ban on mining if its ecological consequences are not reduced:
“If these measures were not effective in reducing the impacts, the Administration should explore executive orders, and Congress could consider legislation, to limit or eliminate the use of these consensus mechanisms consuming a significant amount of electricity for cryptocurrency mining.»
👉 Lost with the different mechanics? Find our list of the different consensus in cryptocurrencies.
It is for the moment only a recommendation of a report, but it is far from being insignificant. Since China closed its mining farms, miners have moved… Especially in the United States, which last January represented 38% of the global hashrateaccording to data compiled by the CBECI.
The United States has therefore become a global mining hub, and they intend to regulate this sector. In any case, things are also changing at the level of cryptocurrencies. In a few days, Ethereum will switch to proof of stake, which will drastically reduce its electricity consumption. A major event, which could encourage institutions and decision-makers to look again at the subject.
👉Read about it – The Merge: last straight line for Ethereum (ETH) before its historic update
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Source: White House, press release
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