Mining Bitcoin soon banned in the USA? Could cryptocurrency mining soon be banned from the United States? This is indeed what a report from the White House Office of Science and Technology Policy published yesterday suggests, containing a vitriolic criticism of the mining of Proof of Work (PoW) cryptocurrencies, such as the Bitcoin.
The report has indeed estimated that cryptocurrency mining operations constitute a major obstacle to the fight against climate change. It also states that federal agencies should consider information provided by cryptocurrency miners and local utilities "in a manner that preserves privacy" to help understand and mitigate their environmental impact.
The figures are indeed striking: Crypto mining activity in the United States would now consume as much energy as the entire US computer park, or the entire residential lighting, according to the report. Note that these conclusions are in addition to an accumulation of criticism about the electricity consumption of bitcoin mining , in a context of global energy crisis.
Reminders on PoW and PoS crypto mining and power consumption
For neophytes, it should be remembered that crypto mining involves the massive use of computer computing power, often with graphics cards used in video games, or specialized, in order to solve the mathematical equations necessary for the validation and security of transactions. . This process consumes a phenomenal amount of electricity.
Cryptocurrency miners receive remuneration from newly minted cryptocurrencies. Thus, crypto mining is also at the origin of the increase in the supply of cryptocurrencies which are based on the PoW system.
Bitcoin, the world's largest cryptocurrency by market capitalization, relies on this "proof of work" system. Ethereum, the second most important digital currency on the market, is also based on a PoW system, but will switch to a “Proof of Stake” system (PoS) during the month of September, at the end of of a transition process that started many months ago.
This PoS system is totally different from the PoW system from a technical point of view, and can reduce the energy consumption of cryptocurrency networks by up to 99% compared to PoW networks.
Crypto mining is hampering the fight against climate change, says the White House
Going back to the report released yesterday by the White House, note that it states that crypto mining in the United States is responsible for 0.2% to 0.3% of global greenhouse gas emissions, and 0.4% to 0.8% of national emissions.
This means that since the start of the year, cryptocurrency mining in the United States has generated between 110 and 170 million metric tons of carbon worldwide, and around 25 to 50 million metric tons in the United States.
However, it is important to specify that the report gives few details on the methods used to arrive at the data presented. It should be noted in particular that cryptocurrency miners obtain electricity by buying it from the electricity grid.
The degree of pollution of crypto mining therefore also depends on the means by which the energy is produced, knowing that certain regions of the United States produce a lot of clean energy, and others less.
Moreover, when cryptocurrency mining companies decide to produce the energy they consume themselves, they most often use renewable and clean energies.
It is true that the report takes this point into account, proposing that the government learn more about the composition of the sector's energy consumption, advance energy efficiency standards and promote “the use of technologies environmentally friendly crypto-assets”, but this is only a brief passage.
The White House threatens to ban Bitcoin mining
Even so, the White House report asserts that “the use of electricity from digital assets contributes to GHG emissions, additional pollution, noise, and other local impacts, depending on markets, policies and local electricity sources”.
The report thus alleges that “depending on the energy intensity of the technology used, crypto-assets could impede broader efforts to achieve net-zero carbon pollution, consistent with U.S. climate commitments and goals.”
Given these findings, the White House has gone so far as to warn that if cryptocurrency mining fails to be greener, it could be banned altogether, at least in the case of crypto PoWs like Bitcoin.
“If these measures prove ineffective in reducing impacts, the administration should explore executive actions, and Congress could consider legislation, to limit or eliminate the use of energy-intensive consensus mechanisms for crypto mining. -assets,” the report says.
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