Home Technology Crypto Mining’s Energy Consumption Raises Further Concern From Lawmakers

Crypto Mining’s Energy Consumption Raises Further Concern From Lawmakers

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Crypto Mining’s Energy Consumption Raises Further Concern From Lawmakers

Following a January congressional hearing on the carbon footprint of cryptocurrency mining, lawmakers from the House Energy and Commerce Committee call on four crypto mining platforms to disclose more information about their individual energy consumption.

Speaking to Core Scientific, Marathon Digital Holdings, Riot Blockchain, and Stronghold Digital Mining in four separate letters, House Representatives seek detailed information on the energy sources used for digital asset mining, the use renewable energy credits, as well as the amount of time spent in commercial operations dedicated specifically to crypto mining activities.

“Blockchain technology holds immense promise that could make our personal information more secure and the economy more efficient,” the leaders of the Energy and Commerce Committee wrote. “However, the power consumption and hardware required to support [proof-of-work]Cryptocurrencies based on cryptocurrencies can, in some cases, produce serious externalities in the form of harmful emissions and excessive electronic waste.

Most cryptocurrency and digital asset transactions are conducted using proof-of-work ledger software technology that provides security during crypto mining activity. Significant amounts of electricity are required to process the complex algorithms preceding each ledger transaction that leads to a digital currency token.

High electricity consumption during crypto-mining activity has drawn attention from conservationists for its demand on power grids, contributing to more fossil fuel emissions and therefore climate change.

“Given the existential threat posed by the climate crisis, we are deeply concerned about efforts like this that increase demand for fossil fuels, with the potential to put further strain on our energy grid,” wrote Representatives Frank Pallone, DN.J., Bobby Rush, D-lll., Diana DeGette, D-Colo., and Paul Tonko, DN.Y.

In addition to a detailed picture of electricity consumption, the committee is also looking for 2021 year-end summaries of electricity used by crypto-mining facilities and companies’ future plans to reduce electricity consumption. unnecessary energy or offset the electricity consumption of their data centers.

Several lawmakers have weighed in on the energy demands of cryptocurrency as the industry continues to grow. Earlier in 2022, a bicameral group of lawmakers wrote to management to the Department of Energy to highlight the amount of uses of electricity blockchain proof-of-work software and presented data suggesting that crypto mining companies have generated large amounts of carbon emissions through their data processing.

“The results of our survey, which collected data from just seven companies, are concerning, with this limited data alone revealing that crypto miners are energy-intensive consumers that represent a significant – and rapidly growing – amount. – carbon emissions,” the lawmakers noted. . “Our survey suggests that the entire US crypto mining industry is likely to be problematic for energy and emissions.”

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