American senators take a closer look at Bitcoin mining

On March 7, U.S. senators addressed the energy use of crypto mining during a hearing of the Environment and Public Works Committee.

On March 7, U.S. senators addressed the energy use of cryptomining during a hearing of the Environment and Public Works Committee. The committee was chaired by Democratic Senator Ed Markey of Massachusetts. "Crypto mining has exploded in the United States over the past two years. It is extremely energy-intensive," Markey said.

During the sessions, several experts were interviewed. Among them was Courtney Dentlinger, vice president of customer service and external affairs for the Nebraska Public Power District. She spoke positively about mining activities. Crypto miners can use energy infrastructure very efficiently and help stabilize power grids, Dentlinger said.

Markey meanwhile wants to introduce a bill to increase the transparency of electricity use by American mining companies "so we have information about the climate impact." In addition, Rob Altenburg, director of energy and climate at the PennFuture organization, and New York State Assemblywoman Anna Kelles were invited as experts.

Bitcoin: proof of work vs. proof of stake

During the session, the consensus methods Proof of Work and Proof of Stake were discussed. Markey urged the crypto industry to consider less energy-intensive ways to generate assets.

The energy use of the Bitcoin network has always been controversial. Critics accuse the network of disproportionate resource use and climate harm. Proponents, on the other hand, see Bitcoin as the backbone of an economy that, in the long run, is significantly more ecological and resource-friendly than the current financial system.

Bitcoin mining can, for example, efficiently use overproduced electricity, mainly generated by renewable sources like wind.