The report outlines regarding the impacts of crypto assets – “immediate transparency” is needed.

In the time since the 2022 White House report warned of the energy costs of cryptocurrencies and their negative climate and environmental impacts, the industry has grown significantly.

What is happening?

In March of that year, President Joe Biden issued an executive order to ensure the responsible development of digital assets Investopedia I mentioned. A response six months later from the White House Office of Science and Technology Policy noted that changes were needed to avoid producing thermal pollution, prevent rising electricity costs, and stabilize power grids.

The US could have trouble meeting climate action goals if the cryptocurrency industry does not reduce its use of dirty fuel-based energy, which harms humans, wildlife, the environment and strains the grid, OSTP said. She also noted that cryptocurrency mining only widens the equity gap and creates problems for communities.

In January and February 2024, the Energy Information Administration began collecting energy use data from mining operations under an emergency order, but the companies, backed by the Texas Blockchain Council, successfully sued to slow the process, according to Investopedia.

Why is this important?

The concern raised by the White House report (among others) is that the growth of the cryptocurrency industry generally means that more and more power is needed.

It’s worrying for a number of reasons, not least the noise pollution caused by miners. In Texas, a crypto stronghold, residents of Granbury said they were unable to sleep or enjoy their property and suffered permanent hearing loss and severe cases of dizziness due to the mining facility.

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Then there is the impact on the planet.

For example, one Bitcoin transaction requires 2,237 gallons of water, Investopedia reports. The day before her story was published, there were approximately 552,000 Bitcoin blockchain transactions alone, meaning the platform used more than 1.2 billion gallons of water.

The industry’s footprint is more than 150 million tons of pollution annually (as of a 2022 report) as well as tens of thousands of pounds of e-waste (as of 2024), according to Investopedia.

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What is being done about cryptocurrency mining?

Cryptocurrency companies could reduce their use or switch to renewable energy, and a lot of the controversy would go away. Ethereum has also reduced its energy consumption by 99.95% by moving from proof-of-work to proof-of-stake mining, and is more usable than other cryptocurrencies, according to Investopedia, but the “huge initial investment” requirement for proof-of-stake means validators have to be already wealthy to be able to mine it. Participate in the game.

There is also concern about the industry’s reaction to the government’s search for information, as it has certainly made it seem like cryptocurrency mining is sucking up more resources than estimated. The next cryptocurrency-friendly presidential administration could bury or dismiss any negative findings from upcoming EIA reports.

“Given the urgent need for action to address human contributions to climate change, there must be immediate transparency regarding cryptocurrency mining operations,” Investopedia stated. “As has always been the case, it is the greed of the few that wins the battle against measures taken to protect the masses and the environment.”

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