Bitcoins Carbon Footprint Congressional Hearing

by Jan 17, 2022Bitcoin Mining News, ESG Carbon Footprint0 comments

On January 20, 2022, there will be a Bitcoin carbon footprint congressional hearing about the understanding of Bitcoin and its proof of work mining is terrible for the environment. A coalition of 70 organizations sent Congress a letter back in October 7, 2021, stating they believe Bitcoin proof of work (“POW”) has a large carbon footprint.

The hearing in January 2022 will help policymakers learn about cryptocurrency better. The Bitcoin Policy Institute refuted most of the claims made in the October 2021 letter, stating most of their information was either wrong or outdated.

Policymakers learn about cryptocurrency proof of work Environmental Impact at January 2022 Hearing

January 2022 will be a big learning month for Congress. The House Energy and Commerce Committee will be holding a hearing on the environmental impact of cryptocurrency mining. This hearing aims to educate policymakers about the proof of work algorithms used in cryptocurrency mining and understand the potential ecological effects of this type of mining.

The Committee is interested in understanding how well these algorithms are adapted to current and future energy needs and whether or not they present a significant threat to the environment. They will also be looking into ways to mitigate any potential damage caused by cryptocurrency mining.

The first half of the hearing will summarize current energy issues in the United States and impact cryptocurrency mining. The second half will focus on ways to mitigate future energy demand related to cryptocurrency mining, including alternative proof of work algorithms that may or may not require as much electricity.

This Bitcoin carbon footprint congressional hearing is not for any immediate legislative action but simply for policymakers to learn more about the carbon footprint of cryptocurrency mining.

Coalition of 70 Organizations That Sent Congress a Letter about bitcoin

The coalition of 70 organizations that sent the letter to Congress is a diverse group of advocates concerned about cryptocurrency’s effects on climate change. The members of this coalition come from various backgrounds, including environmental justice, clean air, and climate change. They all came together to form a unified front to urge Congress to take action on this issue.

The letter from this 70-organization coalition to the U.S. Congress was in response to a call for written testimony that is being held in Congress on bitcoin’s carbon footprint. The Congressional hearing will be examining how cryptocurrencies impact the environment and if federal regulation needs to be put into place.

Bitcoin is a cryptocurrency that is mined using computer power. This process is called “Proof of Work” and requires electricity to be used as a means for mining bitcoin. One estimate suggests that by November 2020, bitcoin will require more electricity than the entire United States currently uses on an annual basis. This means that if bitcoin continues to grow at the rate it is, mining will soon use more electricity than any other industry in the world.

Environmental advocates are concerned about this because they believe the large amount of energy used in Proof of Work mining adds to the effects of climate change. These 70 organizations think that Congress should hold a hearing on this issue to take action before the problem becomes too big to solve. Interested on how the ESG credit score can affect you, check out our article on that very topic.

the Bitcoin Policy Institute Response to the Coalition’s Letter to Congress

Straight from their website is a quote: “The Bitcoin Policy Institute is an interdisciplinary cohort of economists, coders, lawyers, climate scientists, philosophers, and policy analysts providing research, fact-checking, and commentary on bitcoin.”

BPI recently responded to the letter sent to Congress. They debunked many of the coalition’s points with facts and data-backed responses. The Bitcoin Policy Institutes believes the alliance of organizations used outdated science & facts, and BPI wanted to set the record straight with current data. BPI’s goal is to make sure policy is written with correct data backing up policies. BPI wants to set the record straight at the Bitcoin carbon footprint congressional hearing. And learn how Bitcoin is helping people in Africa and helping the bankless people in Latin America.

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As policymakers learn more about the carbon footprint of cryptocurrency mining, it’s crucial to have a fact-based dialogue about potential solutions. The Bitcoin Policy Institute has responded to the letter sent to Congress by the coalition of 70 organizations, and their response is worth reading. They provide data that debunks many of the claims made by the alliance, and they make a strong case for why bitcoin should not be singled out when it comes to energy consumption. It will be interesting to see what actions Congress takes in light of this hearing. Check out our other videos on Bitcoin news at our YouTube channel.