Cryptocurrency's energy use is through the roof, and that is one of the reasons why it is frowned upon by many, as its trading and mining use a massive amount of energy for its access. Now, federal regulators are taking actions to address it and want to monitor the crypto mining process and check its usage, as well as emissions that may harm the environment.
Cryptocurrency Energy Use: Emissions Tracking for Federal Regulation?
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Bitcoin mining machines in a warehouse at the Whinstone US Bitcoin mining facility in Rockdale, Texas, on October 10, 2021.
Senator Elizabeth Warren and other lawmakers under this venture drafted a letter to the United States Department of Energy, and its secretary, Jennifer Granholm, said that crypto mining fams should be in check. Here, Senator Warren said that these farms should submit their power consumption levels and disclose their emissions to regulators.
Currently, there is a growing industry in the United States crypto mining business, and there are many that have gone into the business to mine the digital assets for its acquisition. However, while the industry is booming, there are significant effects that it brings to the community and the environment that may soon affect life as we know it.
Read Also: New York Lawmakers Pass Bill Banning Carbon-Based Bitcoin Mining Operations
Cryptocurrency Mining May Use a Grid's Massive Allocation
According to Engadget, the group's investigation that started last year now resulted in their findings, and it talks about a collective use of 1 gigawatt of electricity from the grid. The consumption of these farms can power the city of Houston in Texas, particularly all the residential structures in the area.
Cryptocurrency Mining and Energy Use
Several countries and known entities have limited or banned cryptocurrency mining worldwide, and it aims to prevent these miners from using up energy on the electrical grid meant for the residential and commercial areas. One of the infamous cons of cryptocurrency is its mining, and countries like China have cracked down on miners that take up significant energy in the present.
In the United States, a credit rating agency called "Fitch" claimed that cryptocurrency mining, in general, threatens the country's national electrical grids and may damage it in the long run. Moreover, it takes power more than other entities, with its significant environmental effects another topic regarding the problems that come with it.
Now, a new study and push to track cryptocurrency mining regarding its energy use and emissions is something the country's regulators are looking into to preserve the current grids. Additionally, it doubles as a way to protect the environment as there are beliefs that crypto mining is also out to damage the ecosystem.
Related Article: Bitcoin Miners Sell at Discount; JPMorgan Says it Could Pressure Token Price but Benefits Investors
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Written by Isaiah Richard
