White House Hints Towards Banning PoW Mining Used By Bitcoin
Bitcoin is one of those tokens which utilize proof of mechanism for its mining process. Within a few days, Ethereum (ETH) will move away from that mechanism toward the PoS. However, a recent report by the White House suggests this type of mining is negatively impacting the environment. That's why a hint was also passed that they might ban PoW mining.
All the electricity used by digital assets adds to greenhouse gas emissions. This results in noise, pollution, and various other effects!
The USA has set its own climate goals, and it seems that PoW mining is putting a dent in its intentions. In fact, there are now other options available as well, which can reduce energy usage by 99%. For example, proof of stake mining is a more energy-efficient mechanism and is already used by many tokens.
In the near future, we might even see legislation by the administration and Congress to limit the use of energy-intensive processes such as crypto mining.
Effects Of Mining On Electric Grid
The office of Science and Technology at the White House mentioned that the BTC mining farms are adding undue stress to the power grid. As a result, it can lead to equipment deterioration, fire hazards, and blackouts.
The report also mentioned how the mining of Bitcoin can make electricity more expensive for local consumers.
Considering how much energy is used by the PoW technology, it will make it difficult to achieve the 0 - carbon milestone set by the US authorities.
But for now, it is just a suggestion or a hint at best... Furthermore, we will also likely see how the #2 cryptocurrency (ETH) can successfully move away from the PoW to PoS. This is an indication that we might see other cryptocurrencies, including the BTC, move towards the PoS as well.
No matter how you look at the situation, it is the smart choice for BTC and other coins!