Bitcoin Mining to Face Criticism on Capitol Hill

Bitcoin mining to face criticism on Capitol Hill. A busy start to the year has been experienced by cryptocurrency investors. Bitcoin (BTC) miners, and regulatory authorities throughout the world. The news about Bitcoin mining has been making the rounds lately. As regulators, notably the Bank of England. Look for a cohesive approach to develop a global regulatory framework.

Because of an ongoing energy shortage, the Kosovo government. Halted all cryptocurrency mining at the beginning of the year. Aside from that, the news of an internet shutdown in Kazakhstan. Which is the world’s second-largest Bitcoin mining nation. Broke at the beginning of this year.

The announcement came at the same time that word broke of a U.S. Congress. Subcommittee preparing to hold a hearing to investigate. The environmental impact of cryptocurrency mining and cryptos in general.

The Chinese government outlawed Bitcoin mining last summer owing to the negative impact. That mining has on the environment, according to a report. Back then, China was the world’s top Bitcoin mining nation. Accounting for up to 75% of the worldwide Bitcoin hashrate. China aspires to be carbon neutral by the year 2060, according to the International Energy Agency.

As a result of the restriction, the United States has surpassed all other countries. In terms of Bitcoin mining. As of August 2021. The United States was responsible. For 35.4 percent of the global hashrate, according to the Cambridge Centre for Alternative Finance. Prior to the Chinese government’s ban on Bitcoin mining, the United States. Accounted for only 16.8 percent of global mining in April 2021. It is according to the Bitcoin Foundation.

Bitcoin Mining: The Facts

Due to the fact that cryptocurrency was already on the radar. Which of the federal government of the United States. It was only a matter of time before Bitcoin mining. Became a key focus of the government’s attention.

As we have already covered, there are various key mining statistics. That should be taken into consideration, including:

Approximately 707KwH of electricity is projected to be consumed. By a single Bitcoin (BTC) transaction, according to Columbia Climate School. In addition, there are mining machines. That become heated and must be cooled down as a result of their operation.

It is estimated that Bitcoin (BTC) mining consumes approximately 121.36 terawatt-hours (TWh). This of electricity each year, according to calculations from the University of Cambridge. In this evaluation, if Bitcoin were a country. It would be among the top 30 consumers of energy, according to the World Bank.

Approximately 22 million to 22.9 million metric tons of CO2 emissions. Are anticipated to be generated annually by Bitcoin (BTC) mining. This was according to estimates.

Regarding global warming, Bitcoin (BTC) mining has the ability to elevate global temperatures. Above 2 degrees Celsius in less than three decades. If it continues at its current pace.

House Committee on Energy & Commerce

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A hearing titled “Cleaning Up Cryptocurrency: The Energy Impacts of Blockchains”. Has scheduled by the Committee on Energy and Commerce’s Subcommittee. On Oversight and Investigations following the Stablecoins Committee’s hearing in December.

The hearing slated to take place on Thursday, January 20th at 10:30 a.m. As a result of China’s decision to ban Bitcoin mining. In order to achieve its carbon neutral goals. The environmental impact of the cryptocurrency will likely be the primary emphasis. Cryptocurrency regulatory issues, on the other hand. Will almost certainly discussed.

A blanket prohibition on cryptocurrency mining would have a significant. Negative impact on Bitcoin’s value. More essential, though, would be whether any prohibition. It also implemented immediately or over a period of time. A phased-in prohibition would also provide miners. With the time to reroute mining resources to other locations. 

Last week, we looked into Russia and the Commonwealth of Independent States (CIS). As a prospective alternative to the United States, with Kazakhstan. Accounting for 18.1 percent of global Bitcoin mining.

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