According to a Bloomberg report, the Biden administration seeks policy recommendations to reduce Bitcoin mining’s energy usage and carbon footprint.
A report on energy consumption
In August, the Biden administration is expected to release a study on Bitcoin mining, one of the agency’s first investigations on the subject. The study’s primary focus will be on whether crypto mining jeopardizes the country’s climate goals and how they should approach the industry.
The team plans to assess everything from local noise pollution to the energy efficiency of using different mining techniques, comparing Bitcoin’s proof-of-work technique with proof-of-stake used by other cryptocurrencies as part of the study. However, it is unclear whether this has impacted the government or whether it will take any action in response to the recommendations.
Greenpeace USA, the Environmental Working Group, and Earthjustice filed comments to the White House last month urging the Biden administration to take steps to reduce carbon emissions associated with bitcoin mining. Other critics also argue that crypto mining strains the power grid calling for the government to step in.
However, in Texas, there have already been discussions about whether mining facilities could provide grid operators with flexibility by temporarily shutting down during peak demand. Still, the administration is concerned about the economic incentive for miners to turn off their servers, given the opportunity to make money by running all the time.