Stock Groups

Dorsey, Saylor, Fidelity write to EPA to defend bitcoin mining

[ad_1]

They are also known as mining machines and they work around the clock to discover new cryptocurrency units.

Benjamin Hall | CNBC

These are some of the most prominent names in bitcoin — including Jack Dorsey, Tom Lee, and Michael Saylor — have banded together to refute claims made by House Democrats calling on the Environmental Protection AgencyTo study the effects of cryptomining on the environment.

Bitcoin works on proof-of work (PoW), which means that bitcoin miners all over the globe use high-powered computers and multiple processors to create new Bitcoin and verify transactions. Though proof-of work mining is complex and requires a lot of electricity, this model has almost become synonymous for bitcoin. ethereumat least for another few months — still uses this method to secure its network.

Representative Jared Huffman, a Democratic-California, is among nearly two dozen House members. legislators, wrote to the EPALast week, the regulator asked that mining companies comply with Clean Air Act/ Clean Water Act. This was in response to “serious concerns” regarding allegations that crypto-related facilities are polluting the environment and contributing significantly to global greenhouse gas emissions.

In a rebuttal letter sent to EPA Chief Michael Regan Monday morning, a mix of bitcoin miners and industry experts — as well as firms like Benchmark Capital, Fidelity Investments, and Fortress Investment Group — make the case that House Democrats got a lot wrong in their messaging about the fundamentals of proof-of-work mining.

The letter first raises concerns about lawmakers combining data centers with power-generation facilities.

The rebuttal letter says, data centers that contain “miners” are no different than data centers owned and operated by Amazon, Apple, Google, MetaAnd Microsoft. Each building is simply a place where electricity can power IT equipment.

According to the letter, “Regulating the data centers’ computers could be an enormous shift in US policy.”

Darin Feinstein (co-founder) of cryptocurrency mining operation, said that they are confusing the public. Core Scientific — and one of the primary authors on the letter. “The source of pollution is the energy generator, which means that all data centers purchase electricity from upstream.

Feinstein stated that if the EPA wishes to regulate energy production, then there are channels already in place.

It would be unusual for the EPA regulate computations that occur within a data centre. This is clearly beyond their scope,” Nic Carter from Castle Island Venture, who wrote the counter, said to CNBC.

Carter said, “It makes no sense to ask EPA about which type of computation is being performed.”

The rebuttal stated that although power plants are regulated by the EPA, the actual ownership of power generation is very limited.

“The letter makes it sound like there’s a bunch of these vertically integrated miners like Stronghold and Greenidge…but that’s a minuscule portion of overall hashrate,” continued Carter, referring to an industry term used to describe the computing power of all miners in the bitcoin network.

Huffman, along with his House counterparts, also have issues with the use of specialized computing hardware. They claim that this creates major electronic waste problems as many devices become outdated quickly, and large quantities of electronic waste.

It cites figures that Bitcoin mining generates 30700 tons annually of electronic garbage. According to the letter, “The entire industry should be held accountable and dissuaded from creating such waste.”

Today’s EPA note refutes the ewaste claim. The letter states that the legislators cited a controversial research study, which made bold assumptions about depreciation for mining rigs. According to the letter, the assumption that depreciation will take place over a period of 1.3 years is too short and that all rigs must be scrapped periodically.

The EPA is not yet clear if it will engage in the wider debate about proof-of work mining. CNBC did not receive a response from the agency immediately.

[ad_2]