By George Ward
In a statement on Thursday, US Representative Jared Huffman and Senator Edward Markey unveiled a new bill titled the Crypto-Asset Environmental Transparency Act. This bill would mandate crypto mining firms using over 5MW of electricity to disclose their CO2 emissions.
According to the latest bill, crypto miners, especially BTC miners, must report their GHG (Green House Gas) emissions to the appropriate authorities. The recent bill comes amid immense pressure on lawmakers to ban crypto mining.
Several environmentalists continue highlighting the devastating effects of Bitcoin mining on the environment. Another issue is the high amount of power Bitcoin miners consume yearly.
According to Senator Markey, the 5MW is a threshold above which firms must report their GHG emissions. Notably, most Bitcoin miners use more than 5MW of electricity.
Also, such firms must report their power source to the authorities. Meanwhile, the US Environmental Protection Agency (EPA) will be evaluating the present and future effects of crypto mining on the environment.
The agency will examine their strain on the country’s power grid and fossil fuels. Additionally, the agency is expected to provide recommendations to state authorities on reducing the power consumption of such companies.
Furthermore, the members of Congress opined that BTC mining consumes a large amount of power. They cited an August report from the Office of Science and Technology Policy.
The report says Bitcoin miners spend the same amount of electricity that would power every house in the US.
The Effects Of Bitcoin Mining On The Environment
Even though Bitcoin and a few other blockchains use the PoW (Proof-of-Work) mechanism, most blockchains like Cardano and Solana use the PoS (Proof-of-Stake) consensus mechanism.
The largest altcoin by market cap, Ethereum, recently transitioned from the PoW to the PoS. The PoS consensus mechanism requires less energy compared to PoW cryptos.
According to reports, BTC mining firms consumed almost the same power as Egypt in 2022. This equates to over 100 TWh.
Furthermore, Bitcoin mining has a detrimental impact on the environment because it hastens the rate of global warming. Also, the electricity required for BTC mining is usually generated by power plants that depend on fossil fuels.
Research proves that using fossil fuels like natural gas and coal for any purpose (including BTC mining) leads to the production of greenhouse gases.
Consequently, these gases contribute to global warming and adverse weather changes. Reports estimate that BTC mining will account for about 0.1% of total GHG emissions in 2022.
Additionally, increased usage of fossil fuels like coal to generate electricity leads to air pollution. All these factors have caused several environmental groups to call for a ban on Bitcoin mining.