On Thursday, 14 members of the United States Congress issued a letter to the EPA or Environmental Protection Agency with more learning material on Proof-of-work or PoW consensus. The letter, which was co-signed by several crypto bulls, surprisingly seemed positive. It urges EPA to pursue a “comprehensive analysis” when understanding the environmental impacts of digital assets.
— Dennis Porter (@Dennis_Porter_) June 16, 2022
The letter says PoW is not that bad
Before this, a similar letter on PoW consensus was sent to the same agency, but it contained more negatives than positives. Unlike the latest message that argues that the debate is more nuanced, the previous one focused heavily on energy consumption as a metric of environmental harm.
According to Thursday’s letter, a significant amount of the energy used in Bitcoin mining comes from renewable sources. According to the Bitcoin Mining Council, almost 58% of the global mining business is currently fueled by sustainable power.
Estimates from New York, which is on the cusp of passing a moratorium on carbon-based crypto mining, reveal the rate might be as high as 80%. Despite previously opposing Bitcoin mining, New York City Mayor Eric Adams wants Governor Hochul to veto this ban.
New York City Mayor Eric Adams, who wants Governor Hochul to veto the PoW mining ban, gives the same reason as Congress’s request for additional consideration from the EPA. The two entities do not want to obstruct the expansion of a new and lucrative industry.
The letter reads:
“At a time of rapid technological innovation, we must affirm our commitment to responsible innovation to ensure future generations of Americans continue to enjoy prosperity and opportunity.”
Miners can also have a significant stabilizing effect on energy grids, according to the letter. The industry can generate enough demand to justify “robust baseload” levels while simultaneously shutting down during peak times.
Many governments are concerned over the negative impact of PoW consensus on the environment. Notably, in November last year, Sweden’s Financial Supervisory Authority or FSA called for a ban on “energy-intensive” PoW crypto mining.