- Crypto mining advocates will face a grilling during a House Energy and Commerce Committee hearing on Thursday
- This is the first time that crypto mining itself has come under the spotlight
- We can expect misinformation and lack of education to be rife
Crypto mining advocates will face the Oversight and Investigations subcommittee of the House Energy and Commerce Committee on Thursday, and if history is our guide they face a tough ride. Energy usage has become the most vilified aspect of the crypto sector, and Thursday’s hearing represents the first time that representatives from the mining sector will face lawmakers, where they will be asked to explain why the damage to the climate caused by proof-of-work mining systems is beneficial. It may not be pretty.
Crypto Mining Situation Echoes Past Battles
The situation with the crypto mining industry is reminiscent of the crypto industry as a whole when it comes to hearing such as these. For years, congressional hearings on cryptocurrencies have been negative, with congressmen and women offering already outdated opinions or simply repeating rhetoric they have learnt from the mainstream media. And then, of course, there’s Brad Sherman.
It has taken years to get members of congressional committees to understand the fundamentals of cryptocurrencies and what they can do, but December’s meeting of the US House Financial Services Committee showed that, at last, the reality is breaking through.
The situation could be the same with crypto mining, and indeed there is no reason to think it will be any different. Cryptocurrency’s carbon footprint will be brought up and there will comparisons to the energy usage from any number of countries around the world, all based of shonky data.
Education is Key
This mantra is hard enough to shake, but then comes the task of explaining why it’s worth it. The cryptocurrency market is still seen by many as a snake pit waiting to scam newcomers at every turn, and it is going to be very hard in this initial session to reverse opinions not only on the truth over the carbon output of crypto mining but its value to business and individuals.
We could have another years’ long educational battle on our hands with the crypto mining argument, but, as we have seen, these battles can eventually be won.