• Sat. May 21st, 2022

Bitcoin Mining Council rebuts House Democrats in letter to EPA

ByHazel R. Lang

May 2, 2022

More than 50 of the biggest advocates of bitcoin mining have put their names to a letter to the Environmental Protection Agency (EPA) pushing back on recent claims by a group of US Democrats.

Last week, more than 20 House Representatives co-signed a letter to EPA Administrator Michael Regan asking the agency to investigate possible negative consequences related to bitcoin mining. The letter referenced e-waste from hardware replacement, greenhouse gas emissions and the reopening of old gas and coal plants, among other concerns.

U.S. Representative Jared Huffman led the initiative, which collected signatures from Representatives Alexandria Ocasio-Cortez, Rashida Tlaib and Brad Sherman, among others.

MicroStrategy CEO Michael Saylor revealed the new response letter Monday morning on Twitter. “We have drafted a response to clear up confusion, correct inaccuracies, and educate the public,” tweeted Saylor.

Saylor has organized the response with the help of his Bitcoin Mining Council, a coalition of mining and adjacent companies that seeks to push back against negative public narratives around mining. The group sent its own letter to the EPA today, saying the reps’ letter is “based on several misperceptions regarding Bitcoin and digital asset mining,” and seeks to set the record straight. .

“The undersigned agree that by embracing the bitcoin network and bitcoin mining, the United States of America will be more innovative, economically resilient, and ultimately stronger in the future,” the letter reads.

Signatories included Block Chief Jack Dorsey, Galaxy Digital’s Mike Novogratz, Susquehanna’s Global Head of Digital Asset Strategy G. Bart Smith, SkyBridge’s Anthony Scaramucci, Fidelity’s Tom Jessop and Benchmark Capital’s Peter Fenton, among others. .

Arguments

The letter responds directly to seven points raised in the representatives’ letter. These responses primarily argue against the idea that bitcoin mining generates carbon emissions.

The signatories claim that miners use electricity like any other data center, and that mining itself does not create emissions. Instead, the argument goes, miners primarily use energy sources that can create emissions — and those emissions can be reduced or eliminated with policy decisions.

If a data center complies with the regulations put in place by the agency, there is no reason for it to be treated any differently than other energy-consuming processes, according to the signatories.

The letter also claims that some claims in the representatives’ letters are false, such as the claim that Bitcoin mining alone produces 30,700 tons of electronic waste per year. The signatories argue that this figure comes from a particularly biased source and that the document he cites fails to significantly prove the claim.

They also take aim at the claim that a single Bitcoin transaction could power the average US household for a month.

“Analysis of the cost of energy “per transaction” is a deeply flawed way of thinking about Bitcoin, because the projection of future energy growth is not a function of the number of transactions, but rather of the value of the issuance of Bitcoin (which is a function of price and supply growth), as well as the fees users are willing to pay to transact,” the letter explains.

© 2022 The Block Crypto, Inc. All rights reserved. This article is provided for informational purposes only. It is not offered or intended for use as legal, tax, investment, financial or other advice.



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