A United States House Energy and Commerce subcommittee will investigate the environmental impacts of cryptocurrency tomorrow.
This is an important step as Congress starts to pay more attention cryptocurrency and related policies. Environmental activists have tried to bring attention for a long time to the carbon emissions from electricity consumption and bitcoin mining.
According to the Cambridge Bitcoin Energy Consumption Index (CBTI), Bitcoin uses around 137 terawatts per year. This is more than some countries’ electricity needs, such as Norway (124.3 TWh), Ukraine (124.5TWh), and many others. Because Bitcoin operates on a proof-of-work basis, it requires a lot of computing power to mine new bitcoins.
Frank Pallone, Energy and Commerce Chair, and Diana DeGette (subcommittee chair), stated that they have seen a rapid rise in crypto popularity over the past few years. It is time to address the severe energy and environmental effects it has on our communities, and the planet.
They added that they look forward to studying crypto mining’s energy footprint and how proof-of-work blockchains may migrate toward cleaner alternatives and more sustainable energy solutions.