Target of regulators since the beginning of the year due to a decried environmental impact, bitcoin mining has finally found spokespersons with American legislators. Indeed, 14 of the US Congress sent a letter to the country’s Environmental Protection Agency (EPA) defending the activity. In particular, the document presents the various advantages that derive from mining based on Proof-of-Work (PoW). Details in the following.
A substantial stabilizing effect on energy networks
On June 17, analyst Dennis Porter revealed on Twitter that 14 members of Congress sent a letter to EPA Administrator Michael S. Regan in defense of bitcoin mining. These include Senator Cynthia Lummis, her colleagues Bill Hagerty, Kevin Cramer and Steve Daines, then Representatives Patrick T. McHenry, Pete Sessions, Bill Posey, Bill Huizenga, Tom Emmer, Andy Barr, Anthony Gonzales, Brian Steil, William Timmons and Ralph Norman. The latter invited the agency to get a better opinion of the environmental effects of cryptocurrency mining.
” As you know, a substantial part of the energy used by cryptocurrency miners is based on renewable sources. Additionally, many miners use other energy sources, such as natural gas, which might otherwise sit idle. “, they specified. Following this comment which puts the pressure of mining on energy networks into perspective, the co-signers emphasized the substantial stabilizing effect of the activity. ” It maintains robust base levels, while being able to be shut down quickly in the event of peak demand “, they added.
Mining: a definite economic asset for the United States
Since the ban on cryptocurrency mining in China, the United States now ranks first in terms of contribution to the global bitcoin hashrate. It results an economic benefit for the country that the co-signatories of the letter were quick to point out. “The United States must focus on promoting responsible innovation so that our country can be able to compete in a hypercompetitive and globalized economic system. “, they claimed.
In doing so, the co-signers of the letter let it be known thatit would be counterproductive to attack PoW-based mining citing remarks made by Janet Yellen, Secretary of the Treasury. She stated, among other things, that ” favoring one technology over another, including proof-of-stake over proof-of-work, can stifle innovation, erode future economic gains, and limit affiliate efficiencies “.
The arguments made by members of congress had already been addressed in a previous letter sent to the EPA last month and co-signed by several leaders in the cryptosphere. In particular, the latter specified that nearly 60% of bitcoin mining facilities use sustainable energy. The EPA’s response is now expected after these two letters to find out if it maintains its position on the environmental impacts of this activity.
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Luc Jose Adjinacou
Far from having dampened my enthusiasm, an unsuccessful investment in a cryptocurrency in 2017 only increased my enthusiasm. I therefore resolved to study and understand the blockchain and its many uses and to relay with my pen information relating to this ecosystem.