Report Reveals Groundbreaking White House Crypto Plans That Could Seriously Impact Bitcoin And Ethereum Prices

The Biden administration is working on a set of policy recommendations targeting the exorbitant energy consumption and carbon footprint of bitcoin and crypto, according to a report.

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The skyrocketing power consumption of the bitcoin network is coming under increasing scrutiny from environmental activists and regulators around the world. In March, documents from the European Union revealed the extent of anti-bitcoin sentiment among officials — and their desire to push bitcoin toward a less energy-intensive mining model, like the one Ethereum is moving toward.

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Now, as the price of bitcoin, ethereum and other cryptocurrencies brace for an economic ‘hurricane’, a White House official says ‘climate and energy’ must be taken into account. account when developing digital assets such as bitcoin and ethereum.

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“It’s important, if this is going to be part of our financial system in any meaningful way, that it’s developed responsibly and minimizes total emissions,” said Costa Samaras, senior deputy director for energy at the Office of Policy. White House science and technology. Bloomberg Law. “When we think about digital assets, it has to be a conversation about climate and energy.”

The study, which will “deep dive” into the positive and negative aspects of bitcoin and crypto, is expected to be released in August, according to Samaras.

“We’ve seen reports of noise, local pollution, the restarting of older fossil generators in communities,” Samaras said. “These are not trivial charges.”

Last year, a tough crackdown on bitcoin, ethereum and crypto in China caused the country’s miners to flee overseas and triggered a disastrous price crash that wiped trillions of dollars off the market. of crypto.

Bitcoin and other similar cryptocurrencies that use the so-called proof-of-work consensus mechanism require a large amount of energy which has increased dramatically in recent years as the technology has become more popular and the price bitcoin has gone up. Bitcoin miners secure the network and validate transactions by directing computing power into it in exchange for newly minted coins.

As the price of bitcoin has skyrocketed, demands for electricity from the bitcoin network have increased with the process of securing the network, confirming transactions, and minting new coins that are expected to use a similar amount of electricity as some small countries.

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Ethereum, the second-largest cryptocurrency after bitcoin, has begun the process of transitioning to the less energy-intensive proof-of-stake mining model that allows cryptocurrency holders to “stake” their coins on the network for the secure, confirm transactions and create new coins. The long-awaited Ethereum upgrade began late last year and could be completed within months.

“We need to think about what the appropriate policy responses would be in a world that has moved to proof-of-stake, or a world that has an ongoing mix of proof-of-work and proof-of-stake,” Samaras said. “Proof of work is power-hungry by design, but it also increases security.”

The report could be one of the first to follow President Joe Biden’s March executive order that directed federal agencies to rein in the fast-growing crypto market and industry and release reports that could guide policy decisions. administration.

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Report Reveals Groundbreaking White House Crypto Plans That Could Seriously Impact Bitcoin And Ethereum Prices


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