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The "Sandow Switch" that used to be used by the coal power plant is now being used to provide electricity for a US Bitcoin mining facility.
The photo was taken by MARK FELIX.
The members of Congress debated how to make cryptocurrencies more sustainable. One of the biggest questions was whether to use renewable energy to power the mining at the heart of the network, or to use other criptoms that don't need as much energy in the first place.
The House Energy & Commerce Committee held an oversight hearing on the energy impacts of cryptocurrencies. The US became the center of mining for the virtual currency after China stopped mining within its borders because of how much energy it uses. The transition could have a big impact on the strained power grid in the US as well as the Biden administration's ability to meet its ambitious climate change goals.
The existence of currency in every day life will likely expand.
Representative Diana Degette said in her opening comments at the hearing that the presence of currency in every day life will likely expand. As the industry moves forward, it is crucial for the networks to identify ways to reduce the need for constant high volume energy use and minimize the effects on the environment.
The countries of Ukraine and Norway use less electricity than the bitcoin network. It would be the 27th most electricity-hungry nation in the world if it were a country. That makes it the most polluted coin, since it is powered by fossil fuel energy.
It is the biggest network in the world and part of the reason for its outsized energy use. Because it uses a process called Proof of Stake that works as a sort of security system to keep its ledger of transactions secure and accurate, it needs more electricity than other cryptocurrencies. The miners use specialized computers to solve puzzles. They get a reward. Computing power is burned through electricity.
There are some things that are worrying.
During the wet season in China, miners used clean hydropower and coal when the resources dried up. In the US, the mix of energy for mining is still being worked out. There are some worrisome signs. Coal-burning power plants have already been extended by miners.
This is deeply concerning, given our current climate objectives. Representative Degette said that the focus now needs to be reducing carbon emissions overall and increasing the share of green energy on the grid.
During today's hearing, industry experts argued that there is an opportunity for cryptocurrencies to embrace renewable energy and help the US grow its clean energy industry. Depending on the weather, solar and wind can be intermittent sources of energy. There is not enough battery storage yet for renewable energy on the grid so miners can use up excess renewable energy.
John Belizaire, founder and Chief Executive Officer of Soluna Computing, said during the hearing that computing is a better battery. His company builds data centers.
Some experts don't think that renewables will be a silver bullet for energy problems. Electricity from renewable sources will eventually need to power everything from vehicles to home heating. It would be competing with those needs. When demand for power exceeds supply, it can lead to power outages or burning more fossil fuels to supplement clean energy sources.
Some experts see another solution. Some cryptocurrencies use different methods to keep their ledgers accurate. There are no puzzles to solve and proof of stake is the most popular alternative. The network plans to eventually move from proof of work to proof of stake.
There are no plans forBitcoin. Since miners have already invested in the machines they use to crack puzzles, there is no expectation that the network will ever reach a consensus on making that switch. As long as bitcoin is the biggest player in the game, cryptocurrencies will continue to eat up more and more energy.
Ari Juels, a professor at Cornell University and co-author of the book, said that the bitcoin community deserves their gratitude, but they have more energy efficient alternatives than proof of stake for the sake of the environment. We need to embrace these newer options.
It is not clear how congress members will follow up on the hearing, and DeGette said the discussion of cryptocurrencies's energy usage is going to be an increasing issue for the committee. She said that they don't have any answers.
The stakes are huge for the planet. China is the biggest climate polluter. The Biden administration has a goal of nearly eliminating all greenhouse gas pollution over the next few decades, but it will be difficult to achieve with or without the use of the virtual currency.
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