Cardano (ADA) creator Charles Hoskinson warns that new US government recommendations do not bode well for Bitcoin (BTC) and other crypto assets.
Challenge recommendations from a new White House Office of Science and Technology Policy report which calls for the involvement of the U.S. Environmental Protection Agency (EPA) and the U.S. Department of Energy (DoE) to create evidence-based environmental standards for the responsible design of digital assets, Hoskinson says that the proposals could result in an outright ban on Bitcoin.
“[The] The EPA and the DoE will start talking to crypto companies to basically tell them to change how their cryptocurrencies work.
And how ? Well, these should include “standards for very low energy intensities, low water consumption, low noise generation, clean energy use by operators, and standards that get stronger over time.” for the additional carbon-free generation to match and exceed the additional electrical load of their facilities.”
If these measures prove ineffective in reducing impacts, the administration should explore executive actions, and Congress could consider legislation to limit or eliminate the use of energy-intensive consensus mechanisms for mining. crypto-assets.
In other words, Bitcoin should be banned. That’s how you read it.
The report is a response to an executive order signed by President Joe Biden in March calling for “responsible digital asset innovation.”
According to Hoskinson, the US government can use various strategies to achieve its goals, which could be bad news for proof-of-work crypto assets.
“The White House is now essentially hiding on page seven a report that no one will ever see or read: ‘Hey Mia, it’s good you’re here with proof of work but, you know, global warming is bad. So we should ban it.
And we’re going to ban it softly by bringing in the EPA and the DoE and basically creating standards that you can’t adhere to.
And then, when you can’t, create some form of decree or law to prevent you from doing so.
Or destroy your profit margins so it’s no longer profitable for the US mining industry.
Disclaimer: Opinions expressed on The Daily Hodl are not investment advice. Investors should do their due diligence before making high-risk investments in Bitcoin, cryptocurrency or digital assets. Please note that your transfers and transactions are at your own risk and any loss you may incur is your responsibility. The Daily Hodl does not recommend the buying or selling of cryptocurrencies or digital assets, nor is The Daily Hodl an investment adviser. Please note that The Daily Hodl engages in affiliate marketing.
Featured Image: Shutterstock/Krit Suppaudom