The negative impact that crypto mining has had on power grids in various parts of the world has become a major concern for many countries. The situation is the same in the US. Recently, five industry experts presented their testimonials to the US House Energy and Commerce Oversight Subcommittee. The topic was “Cleaning Up Cryptocurrency: The Energy Impact of Blockchains”. Since crypto mining has to be performed on advanced computers, the power consumption is extremely high.
Finding alternative ways to power crypto mining activities, perhaps from renewable resources, emerged as a common conclusion of the industry experts.
Brian Brooks, a former US banking regulator and ex-CEO of Binance US, was one of the industry experts to share his thoughts on crypto mining.
He argued that this energy-guzzling process of Bitcoin mining would eventually prove to be “economically productive”. Brooks also said that mining physical elements such as gold also consumes large amounts of energy.
Gregory Zerzan, a shareholder in business law firm Jordan Ramis, along with John Belizaire, the founder and CEO of Soluna Computing, and Steve Wright, a recently retired former general manager of Washington’s Chelan County, expressed similar views in their testimonies. Both pushed for the idea of encouraging crypto mining using clean energy sources.
An interesting argument in favor of Blockchain technology, but in criticism of Bitcoin’s powerful mining requirements, was expanded by Ari Juels, a technology professor at the prestigious Cornell University.
“The huge promise of Blockchain technology does not require Bitcoin or its energy-intensive component called proof-of-work,” said Juels.
He added that the move from Ethereum blockchain to proof-of-stake (PoS) would likely consume “much less electricity” and support smart contracts as well as non-replaceable tokens (NFTs) – unlike Bitcoin.
The energy-guzzling and environmental impacts of crypto mining began to erupt in parts of the US last year.
In October, several New York City businessmen contacted Governor Kathy Hochul asking for permits to be denied regarding the conversion of the city’s old fossil fuel plants into crypto mining centers.
“Proof-of-Work cryptocurrency mining uses massive amounts of energy to power the computers needed to run business – should this activity expand in New York, it would undermine New York’s climate goals, set under the Climate Change Climate Act.” Leadership and Community Protection Act, could drastically undermine,” the letter read to the mayor.
Also in the state of Texas, power outages due to the surge in Bitcoin mining activity over the winter resulted in the deaths of several people.
Between January 1, 2016 and June 30, 2018, mining operations for four major cryptocurrencies released an estimated 13 million tons of carbon dioxide, a research report claimed last year.
In recent days, regions around the world, including Iran, Kazakhstan, Kosovo and regions in Russia, have had to take steps such as temporary bans on crypto mining. The Georgian town of Svaneti made crypto miners swear a sacred oath not to surrender to the process, due to a shortage of electricity.
Amid these mounting concerns, some regions are actively taking steps to tackle this crypto mining problem in an efficient manner.
Nayib Bukele, the president of El Salvador, has revealed his plans to build a Bitcoin city at the foot of the Conchagua volcano, to power Bitcoin mining with renewable energy and solve the carbon footprint problem associated with it. address the process.
Francis Suarez, the mayor of Miami, has also proposed setting up a Bitcoin mining facility near a nuclear power plant in Florida. According to a report by Latest News Today, nuclear power is on the cusp of being recognized as a true environmental, social and corporate governance (ESG) solution in energy.