White House Threatens Bitcoin Mining, Proposes Ban

White House Threatens Bitcoin Mining, Proposes Ban

Titled Climate and Energy Implications of ‘Crypto Assets’ in the US, the 46-page White House report claims that mining cryptocurrencies – in particular Bitcoin – threatens the US fight against the climate crisis.

Such a concern has existed since China banned miners from its country and they migrated to the US country. According to the latest data from Cambridge University, nearly 38% of Bitcoin mining is concentrated in the US.

Despite this, other data shows that mining is not as devastating as some make out. After all, industry is already benefiting from the excess natural gas previously burned to feed its farms.

White House Bitcoin Mining Investigation Investigation

Even if the Bitcoin price falls, the mining sector continues to be booming. This week, the network’s total hash rate hit its all-time high of 237.75 EH/s. A large part of this is located in the US.

This poses a threat to the Joe Biden administration, according to a recent White House study. After all, the climate crisis is a priority for him, and cryptocurrency mining would stand in the way of the success of his plans.

“The United States is estimated to be home to about a third of global cryptocurrency business, currently consuming about 0.9% to 1.7% of total US electricity consumption.”

Moving on, the text points out that Bitcoin is responsible for 60% to 77% of the mining industry’s global electricity consumption. Then Ethereum appears at 20% to 39%, leaving only 1% to 3% for other cryptocurrencies.

However, the migration from Ethereum to Proof-of-Stake (PoS), scheduled for next week, does not appear to be enough to satisfy the White House. Rather, it puts even more pressure on Bitcoin miners.

“Current discussions about reducing the electricity consumption of crypto assets mainly focus on PoW blockchains, especially Bitcoin”points to the White House document. “There are increasing calls for PoW blockchains to adopt less energy-intensive consensus mechanisms. The most prominent response was Ethereum’s promised release of “Ethereum 2.0”, which uses a PoS consensus mechanism.

Finally, in addition to the current state of the industry, the US government is also concerned about its growth in the coming years, as the trend is for energy consumption to increase, also with more efficient equipment, especially with possible price increases. of bitcoins.

Source: Live Coins