U.S. House of Representatives advocates for Proof-of-Work (PoW) mining to boost the economy
The Republican-led U.S. House of Representatives has presented a resolution emphasizing the significance of Proof-of-Work (PoW) mining for certain cryptocurrencies, such as Bitcoin, in the country’s ability to achieve its energy objectives and promote its economy.
This move is in stark contrast to the White House’s recent announcement of a 30% increase in tax on PoW mining.
The resolution was submitted by Mr. Sessions on March 21, 2023, and has been referred to the Committees on Energy and Commerce, Foreign Affairs, Financial Services, and Science, Space, and Technology. The committees will consider the provisions that fall under their jurisdiction.
The resolution highlights that PoW mining uses high-powered computing to guess a random encrypted number to win the right to make the next block in a blockchain and earn Bitcoin. This process sets the rules for miners and verifies the legitimacy of every transaction using the blockchain. The resolution argues that PoW mining is an essential process that allows for a blockchain network to remain trusted, open, and decentralized.
Moreover, the resolution notes that PoW mining requires energy consumption for the validation process, but many concerns are unwarranted. PoW mining’s energy usage is transparent and verifiable, using only 0.14% of the global energy supply, which is less than the amount of electricity lost in transmission and distribution each year.
Additionally, PoW mining seeks out low-cost energy and can utilize excess supply during off-peak periods, which improves the overall economic viability of renewable energy projects. PoW mining also contributes to grid stability through demand response, whereby miners can quickly curtail load to maintain equilibrium between supply and demand on the electrical grid.
The resolution also points out that PoW mining economics are notably responsive to electricity prices. Miners can curtail operations when electricity supply is low or prices are high, providing more energy to households and the grid during times of heavy demand. It highlights the example of the summer and winter of 2022, where Bitcoin miners reduced usage by over 1,000 MW and up to 1,475 MW, respectively, in response to a conservation alert from the Electric Reliability Council of Texas (ERCOT).
Finally, the resolution argues that PoW mining can reduce methane emissions by using stranded or wasted methane as a fuel source, thus reducing the amount of methane that enters the atmosphere. Overall, the resolution expresses the House of Representatives’ belief that PoW mining is crucial to the United States’ energy goals and economic growth.
- Coinbase Tests ChatGPT For Smart Contract Security: Results Are Mixed
- US Dominates Crypto VC With Top 300 Firms Managing $83.9 Billion In Assets
- White House Criticizes Cryptocurrency In The Annual Economic Report