Your guide to Bitcoin, Ethereum and Web 3.0
US senators are again taking a closer look Bitcoin mining.
Senator Ed Markey (D-Massachusetts) chaired a session of the Environment and Public Works Committee yesterday, focusing on the energy use of mining.
The mining industry, Markey said, “deserves the spotlight.”
Markey is sponsoring a bill pushing for more transparency from miners regarding their environmental impact.
“It has grown explosively in the US in the last two years. It is extremely energy-intensive. And we have seen it harm the public at the same time as it enables the creation of highly concentrated wealth in our country, he said.
He said the full extent of the miners’ impact was not known, which is why his bill would require companies to disclose more information about their operations to the environmental regulator.
“We need a federal approach just so we have the information out there about what the climate impacts are,” he said in his closing statement.
Senator Pete Ricketts (R-Nebraska) argued that mining is not the only industry that relies on large banks of computer servers and that Washington DC should not be allowed to pick “winners and losers.”
Ricketts’ home state of Nebraska has seen an economic boost from the crypto mining industry, thanks to the state’s low electricity costs.
Courtney Dentlinger, vice president of customer service and external affairs for the Nebraska Public Power District, who participated on the expert panel for the hearing, said it had had a positive impact on the local power industry.
Customers who have a steady demand for power, such as 24-7 miners, have historically made the most efficient use of electrical infrastructure, she said in testimony delivered ahead of the hearing.
“Additionally, while crypto mining requires a lot of power, the load can be very flexible. They often seek outage rates and can quickly drop loads, which has proven useful during local storm damage-related events, and even larger network events,” she said.
Miners should ‘work smarter, not harder’
The other two members of the expert panel were Rob Altenburg, senior director of energy and climate at the clean energy advocacy group PennFuture, and New York State Assembly member Anna Kelles.
Kelles, a Democrat, voiced his support for Markey’s bill. She drafted a bill in New York state that placed a two-year moratorium on new Bitcoin miners from setting up shop. The bill came into force in November last year.
In his opening remarks, Kelles said the demand for more power has led mining companies to bring old power plants back online.
“As one of the solutions for cheap energy, cryptocurrency mining companies have been working to reopen retired fossil fuel facilities such as the large-scale facility called Greenidge in New York on Seneca Lake,” she said. “An environment with moderate temperatures, clean air and plenty of fresh free water for cooling has made New York an ideal location for cryptocurrency mining companies.”
Kelles said these have a negative impact on the quality of life in the surrounding areas, due to emissions, electrical waste and noise pollution, as well as impacts on local aquatic life.
Senators and witnesses also discussed the proof-of-work process, with several addressing the reduction in energy use achieved by Ethereum’s transition to proof-of-stake.
Senator Markey urged the crypto world to “work smarter, not harder” and consider less energy-intensive methods of producing assets.
