Over 65 nonprofits are collectively urging the US Congress to consider the environmental damage of crypto mining when drafting new laws.
“As Congress considers legislation for cryptocurrencies, we urge you to consider the impacts that Proof of Work mining has on climate, drinking water and environmental justice,” the organizations, which include 350 .org, Friends of the Earth US, and Small Business Alliance, among others, wrote in a letter Thursday. The letter was first published by The New York Times.
“Proof of work” refers to a mechanism in blockchains where miners solve math puzzles to add new blocks. As the process uses significant computing power and electricity, the type of crypto mining has long been criticized for its environmental costs.
The mechanism contrasts with proof of stake, which would be more environmentally friendly, as holders could validate transactions by throwing or locking their cryptocurrencies.
The two largest cryptocurrencies bitcoin and ether currently use proof-of-work blockchains. Although Ethererum is in the process of transitioning from proof of work to proof of stake, critics remain skeptical. “It is not known when, if at all, this change will occur,” the letter wrote.
Some of the crypto industry participants argued that the industry is using renewable energy and is adapting to address environmental concerns.
The Bitcoin Mining Council said miners use electricity with a 67% sustainable energy mix, based on a survey of miners who power more than 32% of the global Bitcoin network, according to a July statement. .
What else is going on about crypto?
Sam Bankman-Fried, founder and CEO of the FTX crypto exchange, is one of the youngest people in history to ever join Forbes 400, which ranks the 400 richest Americans. With the exception of Mark Zuckerberg, co-founder and CEO of Facebook FB,
no one in history has been so wealthy at age 29, according to Forbes. Bankman-Fried, which profited from the crypto boom, has a net worth of $ 22.5 billion.
Why do people invest in cryptocurrency? A popular narrative is that the choice stems from mistrust of fiat currencies and existing financial institutions, such as banks, clearing houses, and exchanges. However, a new study shows that cryptocurrency investors show no difference in the level of concern about the security of traditional payment options, such as cash or commercial banking, according to a report released on Wednesday by the group. reflection Center for Economic and Policy Research.
Bitcoin BTCUSD takes a break from yesterday’s rally, recently trading at $ 54,024, down 1.14% in the past 24 hours. Ether ETHUSD recently traded at $ 3,577, up 0.86% in the past 24 hours.