The Future of Crypto Mining in the U.S.
Neither this post nor any other on cryptofal.com should be taken as financial advice. It is not.
Just the other day, the House Committee on Energy and Commerce held a hearing entitled "Cleaning Up Cryptocurrency: The Energy Impacts of Blockchains" to address the growing concerns over proof of work mining and its energy usage.
The committee addressed this on two fronts: domestic and internationally. At home, the resurgence of retired fossil fuel plants to power mining facilities highlighted environmental and health concerns affecting local communities with whom the plants operate in close proximity.
In other states, like Texas, the potential to overwhelm an already vulnerable power grid could be dangerous in times of crisis. On a global scale, Chairman Frank Pallone Jr. of New Jersey addressed how the combined energy consumption from Bitcoin and Ethereum mining for 2021 amounted to 78.8 million tons of carbon emissions. As a whole, the crypto mining industry places the current administration in conflict with its carbon emission goals.
One by one, each speaker addressed the committee in a similar way– they stressed the environmental impacts, acknowledged the continued existence of the crypto mining industry, the gaps in knowledge on crypto as a whole, and discussed the importance of being involved in shaping its future in the U.S. through policy. A partial solution to the overall problem may be closer than the government imagines.
The backlash on mining operations over the past year highlighted the need for renewable energy sources and advancement in computer chip capabilities. On Tuesday, it was revealed that Intel was working on an energy-efficient, low voltage ASIC mining chip for BTC mining rigs. On the same day as the committee hearing, news reports broke that Intel plans to invest $20 billion into a new chip-making facility in Ohio. The future of more efficient mining rigs appears within reach in the near future.
The overall attitude of the committee may be alarming to some within the crypto community, but most of the members seem eager to work with the industry to find solutions. As Chairman Pallone stated:
“Blockchain technology and cryptocurrency bring enormous promise. This hearing is not intended to stifle that promise nor discourage innovation, but instead to examine the potential environmental costs of the cryptomining industry and what can be done to address those impacts.”
The takeaway here should be that the government is coming to the table in the discussion, and it's better to be a participant in the discussion than excluded altogether.