US Congress discussed energy implications of cryptocurrency mining

The former head of the Office of the Comptroller of the Currency noted that energy consumption in bitcoin mining is economically productive

21.01.2022 - 14:00

1 min

What’s new? The industry experts appeared before the US House of Representatives Energy and Commerce Oversight Subcommittee. They offered different views on how lawmakers should address the energy consumption of cryptocurrency mining.

Information on the US Senate Committee on Energy and Commerce website

How did events develop? Brian Brooks, former head of the Office of the Comptroller of the Currency, noted that energy consumption in bitcoin mining is economically productive. He cited other assets, including gold, which require roughly the same amount of energy to mine. In addition, Brooks noted that the traditional global banking system consumes about 2,5 times more energy than BTC at its current market capitalization.

Ari Juels, a professor at Cornell Tech Institute, who has often criticized mining in its current form, supported the cryptocurrency space as a whole. He spoke out in favor of energy-efficient alternatives rather than the PoW algorithm prevalent in mining. He added that the switching of the Ethereum blockchain to PoS will reduce power consumption.

What had happened before? The US lawmakers are paying a lot of attention to cryptocurrencies and blockchain as it evolves. In December, the Senate Banking Committee held a hearing on stablecoins and how the US can participate in the race to adopt digital currencies. That same month, Brooks testified at the House Committee hearing on the role of digital assets in the future of finance.

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