White House Crypto FUD is Coming!! What They Said!!

Back in march u.s president joe biden Signed an executive order about Cryptocurrency which directed different Departments of the u.s government to Submit their reports about crypto by Early september Last week the white house office of Science and technology policy or ostp Submitted its report about the climate And energy implications of Cryptocurrency which suggested a bitcoin Ban is on the table Today i’m going to summarize what the White house report says in simple terms Fact check some of the crazy claims it Makes about crypto mining and tell you What it could mean for the future of btc The report i’ll be summarizing today is Titled quote climate and energy Implications of crypto assets in the United states and i’ll leave a link to The full report in the description if You’re interested I’ll also quickly note that it’s funny The authors refuse to refer to cryptos As currencies in the title and Subsequent text talk about denial Now the report begins by specifying the Directions given to the white house ostp By president joe biden in his executive Order about cryptocurrency back in march The ostp was directed to quote examine The connections between distributed Ledger technologies dlt and energy

Transitions the potential for these Technologies to impede or advance Efforts to tackle climate change at home And abroad And the impacts these technologies have On the environment The authors go on to specify that the Report was spearheaded by two Individuals jake sullivan assistant to The president for national security Affairs and brian diese assistant to the President for economic policy Comments jake made during a cyber Security conference earlier this year And brian’s response to the executive Order back in march suggests that both Are anti-crypto which is not all that Surprising given the contents of the Report The authors explain a bit about what the White house ostp does and the tldr there Is that it gives the president Scientific advice about specific Policies As you’ll soon see the science in many Parts of this report is quite shoddy and Foreshadows some very concerning Policies indeed On that note it may be worth going back To watch our first video about why Crypto mining isn’t nearly as bad for The climate as the critics make it out To be that will be in the description Now the next part of the report gives a

Summary of what we’re about to read Along with a few policy recommendations The authors start by underscoring the Damage that climate change is doing to Human health the environment and the Economy and parrot the talking point That reducing quote global anthropogenic Greenhouse gas or ghg will magically fix All of the above I say magically because there is no Mention of the inflationary fiat system Which is incentivizing the over Consumption that is causing all the ghg Emissions along with all the other Environmental issues like microplastic Pollution which are often ignored when Discussing environmental concerns i Digress The authors then explain that Cryptocurrency adoption is increasing And that’s a problem because some Cryptocurrencies use proof-of-work Consensus mechanisms which are adding to Ghg emissions and causing quote other Local impacts namely disruptions to Energy grids This is where the author states that Quote depending on the energy intensity Of the technology used crypto assets Could hinder broader efforts to achieve Net zero carbon pollution consistent With u.s climate commitments and goals In other words bitcoin could be a threat To the climate agenda stop me if you’ve

Heard this one before The authors go on to answer the four Questions asked in the executive order About cryptocurrency The first question was quote how do Digital assets affect energy usage Including grid management and Reliability energy efficiency incentives And standards and sources of energy Supply The authors commenced their answer with Quote from 2018 to 2022 annualized Electricity from global crypto assets Grew rapidly with estimates of Electricity usage doubling to Quadrupling Now this is where i’ll have to call a Timeout because future estimates of Crypto energy use have almost always Been wrong Never mind that all the other Forward-looking models developed by These government agencies have been Discredited in other contexts as well A topic for another time perhaps Now the authors accurately note that Crypto mining uses between 0.4 and 0.9 Percent of the world’s energy of course They note that this is the same amount Of energy used by countries like Argentina and australia which is meant To give the reader a sense that crypto Mining is using too much energy To the author’s credit they note in the

Next line that the energy use associated With crypto mining is about the same as The energy being used by data centers Around the world a much better Comparison if you ask me The authors also explain that the energy Being used by crypto mining in the United states is about the same as being Used by home computers specifically Between 0.9 and 1.7 percent of all u.s Energy output Naturally the authors are concerned that The united states has become a crypto Mining hub having grown to represent Around 38 Of all the hashrate i.e computing power Securing the bitcoin blockchain What’s amusing is that the authors admit That quote despite the potential for Rapid growth future electricity demand From crypto asset operations is Uncertain Even so that doesn’t stop the authors From predicting that crypto mining will Use one third of all the energy in texas By the end of the decade At least this isn’t as ridiculous as Claiming that bitcoin mining will use 100 of the world’s electricity by 2020 Something the world economic forum Unironically predicted back in 2017 I don’t know about you but these experts Sound more like ideologues to me just Saying

Now interestingly the authors imply that The energy consumption of crypto mining Is fine so long as it’s being done with Renewable energy sources and doesn’t Disrupt energy flows to the communities Where crypto mining is happening What’s even more interesting is that the Authors note bitcoin and ethereum as Using proof of work as their consensus Mechanisms even though ethereum is Literally in the middle of transitioning To proof of stake something which the Authors imply will reduce total crypto Energy use by up to 40 percent this is Clearly an attempt to exaggerate the Energy use of crypto mining in my Opinion especially since the authors Acknowledge shortly afterwards that Ethereum is literally in the middle of Transitioning to proof of stake which Uses a fraction of the energy that proof Of work does Obviously the authors don’t mention that Proof of stake doesn’t have the same Security guarantees as proof of work and You can learn more about that using the Link in the description Now the second question asked in the Executive order was quote what is the Scale of climate energy and Environmental impacts of digital assets Relative to other energy uses and what Innovations and policies are needed in The underlying data to enable robust

Comparisons they sure believe in Long-winded questions don’t they Now the author’s answer commences with What seems to be a sleight of hand and That’s quote global electricity Generation for the crypto assets with The largest market capitalizations Account for roughly 0.3 of global ghg Emissions A few criticisms here For starters the authors do not specify How many cryptocurrencies they’re Including in this calculation nor how They came up with that statistic Did they include say filecoin and all The storage miners did they include xrp And all the financial institutions that Run nodes on its network Also if you watched our video about coin Shares crypto mining report you’ll know That the emissions associated with Bitcoin mining make up 0.08 of the global total That’s the same emissions as dryers used To dry clothes and accounts for nothing More than a rounding error in the grand Scheme of things This really begs the question of which Cryptos were included and how the Authors calculated their energy use the Appendices of the report offer a few Clues but again it’s not really clear How all of this was calculated and it Doesn’t seem to be all that consistent

With the actual science that’s being Done This might be why the authors spend so Much time talking about the quote local Noise and water impacts from operations Electronic waste air and other pollution From any direct usage of fossil-fired Electricity And additional air water and waste Impacts associated with all grid Electricity usage If only the authors would spend more Time talking about the planned Obsolescence of all the products we have To re-buy every year or two and all the Environmental damage that is doing Now the third question asked in the Executive order was quote what are the Potential uses of blockchain technology That could support climate monitoring or Mitigating technologies The authors commenced their answer with Quote Dlt could potentially enable distributed Energy resource coordination as well as Broader supply chain management and they Really didn’t have all that much to add In any case their response reminds me of A scary coindesk article where the Author proposed using blockchain to make Certain products and services Artificially more expensive in the name Of climate change I honestly wouldn’t put it past the

People in power to implement such a System I’m also surprised at just how little The authors had to say in response to This question as i mentioned earlier Moving to a sound money system would Address the climate crisis as it would Incentivize saving and frugality rather Than spending and over consumption as is Currently the case with fiat currencies But then again all the individuals and Institutions who took on record levels Of debt would get wrecked by the Deflation and we can’t have the rich and Powerful defaulting now can we Anyways the fourth question asked in the Executive order was quote What key policy decisions critical Innovations research and development and Assessment tools are needed to minimize Or mitigate the climate energy and Environmental implications of digital Assets The authors commence their answer by Saying that crypto policy should quote Reduce ghg emissions avoid operations That will increase the cost of Electricity to consumers Avoid operations that reduce the Reliability of electric grids and avoid Negative impacts to equity communities And the local environment Now this is a concerning answer because It implies that even if all crypto

Mining is done using renewable energy Sources and in a way that doesn’t Disrupt the energy grid regulators could Still crack down on crypto mining if it Negatively impacts equity and Communities in some other unspecified Manner The vague wording continues in the Author’s specific crypto policy Recommendations the first of which is Quote Minimize ghg emissions environmental Justice impacts and other local impacts From crypto assets Again this leaves the door open to a Crypto mining crackdown for purely Subjective reasons trust the science After listing all the different measures That could be taken by regulators the Authors state that quote Should these measures prove ineffective At reducing impacts the administration Should explore executive actions and Congress might consider legislation to Limit or eliminate the use of high Energy intensity consensus mechanisms For crypto asset mining This statement made the headlines Because it basically says that the u.s Government should ban crypto mining if It doesn’t conform to its poorly defined And blatantly political policy Recommendations The second crypto policy recommendation

Is pretty straightforward as it is to Quote ensure energy reliability in other Words ensure that crypto mining doesn’t Disrupt energy supplies elsewhere Something that’s unlikely to happen as More crypto miners set up their own Off-grid energy sources The third crypto policy recommendation Is to quote obtain data to understand Monitor and mitigate impacts And this one is actually somewhat Concerning That’s because it will potentially Require every single crypto miner in the United states to report to the u.s Government This is a double-edged sword because While it means that crypto miners can Prove to regulators that they are using Renewable energy it also simultaneously Reveals where they are and how they Operate This could pose a centralization risk Hence why some are skeptical about the Bitcoin mining council which seeks to Convince all btc miners to disclose the Details of their crypto mining Operations This could quickly backfire if the Energy grid becomes centralized and it Likely will become centralized because Of climate-related policies News flash if the energy grid is Centralized the government will have the

Power to pull the plug on individuals And institutions it doesn’t like Now the fourth crypto policy Recommendation is to quote advance Energy efficiency standards which Involves quote regularly updating Environmental requirements for crypto Mining meaning that the regulators will Constantly be moving the goal posts The fifth crypto policy recommendation Is to quote encourage transparency and Improvements in environmental Performance which like the third policy Recommendation could pose a Centralization risk What’s different about the fifth crypto Policy recommendation is that it seems To be geared more towards esg investing And you can find out all about that Investment ideology by using the link in The description Now the sixth and final crypto policy Recommendation from the authors is quote Further research to improve Understanding and innovation which is Again Fairly straightforward So the first part of the report is quite Political as it describes all the things That the current u.s administration is Doing to fight climate change including The ironically titled inflation Reduction act which will pump more than 700 billion dollars into various

Initiatives including energy The authors reiterate that crypto mining Could pose a threat to the current Administration’s climate agenda and that The focus of the administration’s crypto Policy in general is to quote protect Consumers investors and businesses As per the president’s executive order About cryptocurrency The authors go on to explain how crypto Mining works and then incorrectly claim That proof-of-work blockchains quote Will generally use more electricity as The crypto assets value and network Grows so long as the distribution of the Crypto asset among miners stays constant Now although it’s true that crypto Mining will generally use more Electricity this is not necessarily the Case as crypto mining equipment has Become exponentially more efficient Over the last decade and these increases In efficiency are likely to continue After all it is in the economic interest Of miners to minimize their electricity Use The authors then go on to explain how Proof of stake works and note solana Cardano and quote the proposed ethereum 2.0 as examples of proof-of-stake Cryptocurrencies A video by cardano founder charles Hoskinson about this crypto report Suggests that he worked with politicians

To make sure that cardano was mentioned And this makes me wonder whether solana Exercised the same influence just Speculation on my part What’s nice is that the authors note That quote every consensus mechanism has Strengths and weaknesses but what’s not Nice is the authors then add that quote Responsible development of digital Assets would encourage consensus Mechanisms that minimize energy usage And environmental impacts while Maximizing benefits to consumers Now last i checked maximizing benefits To consumers is not what cryptocurrency Is about it’s about decentralization Trustlessness permissionless and the Ability to transact with currencies and Hard monies without the interference or Influence of the state thank you very Much Cryptocurrency is also about creating Voluntary communities to crowdfund Public goods within said communities Something which could eventually replace Governments More about the power of crypto Governance using the link in the Description Anyhow the second part of the report Covers the electricity usage of Cryptocurrencies and what’s hilarious is That it starts with quote digital assets Including crypto assets require

Electricity for generation ownership and Exchange something that’s true of almost Everything we use these days As a quick aside the criticism of Crypto’s energy use almost always Presupposes that crypto has no inherent Value that justifies this energy use the Fact the authors seem to take issue with With any energy use coming from a crypto Regardless of its consensus mechanism Suggests they subscribe to this premise Not surprisingly the authors take issue With the fact that quote electricity for Cooling can add anywhere from a low Percentage for cool climates to over 100 Of the electricity consumed by the Computing equipment itself without Noting the offset of using crypto mining Heat for other purposes The authors then make another Questionable claim and that’s that quote For proof-of-stake blockchains computing Tasks can be performed by General-purpose computers or servers This is questionable because there’s a Huge difference between a computer and a Server It’s worth pointing out that the Requirements for running a validator on A proof-of-stake blockchain can also be Extremely high especially in the case of Faster proof-of-stake cryptos like Solana This compromises decentralization which

The authors don’t care much about to say The least After admitting that crypto-miners can And often do set up their own energy Sources or make use of wasted energy Such as gas flares the authors note that Quote the total power usage of today’s Crypto asset networks cannot be directly Monitored because many computing or Mining centers do not disclose their Location and do not report their Electricity usage As such the total energy use of Cryptocurrency can only be estimated This is where the authors repeat that 0.4 to 0.9 percent of all global energy Use statistic and repeat that ethereum Mining accounts for up to forty percent Of all crypto energy use without Mentioning that ethereum’s energy use is About to decline by 99.9 percent The authors then touch on something Fascinating and that’s that quote the Difference between upper and lower bound Estimates have increased over time Reflecting uncertainties about the types Of mining rigs that may be profitably Deployed when crypto assets experience Higher market values Naturally the authors say this is the Justification for requiring every Cryptominer to report to regulators About their energy use and operations While simultaneously claiming that quote

Market dynamics can quickly render any Published estimate out of date The authors then discuss the difference In energy use between cryptocurrencies And the existing financial system and if You’ve been keeping up with the crypto Headlines you’ll know the most recent Estimate suggests the banking system Alone uses 56 times more energy than Bitcoin mining Obviously the authors don’t mention this And instead complain how the energy use For each btc transaction is impossible To calculate because of all the Transactions taking place on centralized Platforms and scaling solutions like the Lightning network more about the Lightning network in the description The authors also compare bitcoin and Ethereum to visa and other credit card Companies using statistics from 2020 Which seriously under count the number Of crypto transactions given that many Of them occurred during the double peaks Of the crypto bull market in 2021 in Case you’re wondering bitcoin and Ethereum processed just 460 million Transactions compared to the 310 billion Processed by visa and other credit card Companies Guess it’s time to throw in the towel And call it quits on crypto i mean it’s Not like crypto transactions have been Growing exponentially

Of course the authors note that visa and Other credit card companies use less Than one percent of the energy consumed By bitcoin and ethereum mining despite Having admitted that credit card Companies interact with a much larger Infrastructure just a few sentences Earlier the comparison is not equivalent At all The authors then turn to the topic of Crypto mining and the electricity grid And start with two spooky sentences Quote the electricity system is critical Infrastructure for human health the Economy and u.s national security it’s Also the backbone of a future u.s clean Energy economy as electrification will Increasingly displace fossil fueled Vehicles buildings and some industrial Processes Centralization confirmed What’s more is that the authors tacitly Admit that quote twice as many power Outages have occurred in the last six Years in comparison to the previous six Years because of the green energy push And i’ll remind everyone that a rushed Green energy transition is the primary Cause of the current energy crisis The authors then go as far as Proclaiming that quote new demands on The system must help not hinder our Nation’s climate objectives Translation any energy use that is not

In line with our ideology will not be Permitted Now might be a good time to set up your Own energy infrastructure Just saying Conspiracies aside the authors note that In any given energy grid renewable Energy sources are typically used first With fossil fuels being used to meet any Extra demand after renewable energy Sources have been used up Fun fact this is why europe is trying to Cut energy use by 10 It’s also why the authors claim that Crypto mining is causing energy grids to Dip more frequently into fossil fuels Without providing any evidence The authors then make another outlandish Claim and that’s that quote crypto asset Mining operations typically have high Load factors they use power nearly Constantly which is patently false Cryptominers can turn on or turn off at Any time unlike validators who risk Slashing for being unavailable The authors then point to two counties In washington which experienced energy Grid issues because of crypto mining as Proof that their concerns are valid Without disclosing that this happened Over four years ago and that crypto Miners have since found ways to better Integrate with local energy grids The authors also discussed the situation

In new york state specifically the Moratorium on mining put in place Earlier this year in response to an Incident from four years ago when energy Costs increased because of crypto mining Operations The authors then return to the state of Texas and repeat their estimate that Crypto mining will use a third of all The electricity there in the next few Years those good old estimates eh Thankfully the authors talk about Something that actually happened in Texas and that’s crypto miners powering Down when demand for energy in the state Was too high over the summer Amazingly the authors admit that quote Crypto asset mining’s flexibility to Ramp up and down could contribute to Rapid response services which are needed On an electricity grid that’s powered by Renewables with intermittent energy Generation can’t wait what’s not as Amazing is that the authors point to Europe’s scrutiny of crypto mining as Proof that their policy recommendations Are correct and seem to imply that China’s total crackdown on crypto mining Is the way to go in the united states I guess they missed the memo about Crypto mining being impossible to ban Note that you can learn more about Europe’s upcoming crypto regulations Using the link in the description

Next the authors get into the reasons Why it’s next to impossible to project The future energy use of cryptocurrency This includes things like innovations in Crypto mining the creation of new Cryptocurrencies and the emergence of New consensus mechanisms The authors examine bitcoin’s hashrate And its correlation to btc’s price as Evidence that future price action can’t Be used to prove future hashrate This is because bitcoin’s hashrate Hasn’t followed btc’s price off a cliff In 2022 Incredibly the authors admit that quote In the past simple extrapolations have Often yielded unrealistic energy demand Predictions for complex and evolving Information technology systems like Those that comprise blockchains i guess The authors forgot that they did exactly This in the current report What’s even more incredible is that the Authors admit that quote between august 2016 and july 2022 the average estimated Deployed rig energy intensity decreased By around 85 percent due to Computational efficiency improvements Unfortunately the authors aren’t Satisfied because energy use still Increased by 20x which to be fair is a Large amount but it’s worth remembering That the total energy capacity of the World increased significantly in that

Period as well Crickets from the crypto critics The authors end this section by Speculating whether bitcoin’s energy use Will start to come down as bitcoin block Rewards continue to decline in Accordance with bitcoin’s halving Schedule on that note you can find out What happens when the last btc is mined Using the link in the description Anywho the third part of the crypto Report concerns the emissions and Environmental impact of cryptocurrency And the authors start by detailing all The different sources of carbon Emissions in the context of crypto Mining which includes the creation and Destruction of crypto mining equipment This is where the authors repeat the Faulty statistic that crypto mining Accounts for up to 0.3 of global Emissions but this time they caution That quote assessing emissions from Crypto assets is complex consequently The estimates are uncertain Clearly that’s enough to stop Overreaching crypto policies It’s also frustrating that the authors Note bitcoin mining as accounting for Two-thirds of crypto-related carbon Emissions while ignoring the fact that The remaining third will be removed as a Result of ethereum’s transition to proof Of stake and to think we’re talking

Fractions of percentages What’s particularly nefarious is that The authors reference outdated Statistics about the energy being used By bitcoin miners Specifically they seem to imply that Most of crypto’s renewable energy use Was coming from china which banned Crypto mining therefore most crypto Mining uses fossil fuels Well earlier this year the bitcoin Mining council reported that nearly 60 Percent of bitcoin mining was being done Using renewable energy much more than The few percentage points the authors Seem to imply following china’s crypto Crackdown Truly scientific stuff The authors go on to analyze all the Composition of energy sources in the United states and make another Newsworthy claim That’s that quote One year of u.s crypto asset ghg Emissions at this rate is equivalent to The annual emissions from more than Three million gasoline-powered cars for A year of average u.s travel It’s actually wild how many numbers the Authors crunch in this section to try And prove that crypto mining is causing Lots of emissions in the united states They even go as far as citing a few Anecdotes about crypto mining companies

Buying up their own coal plants and There are in fact only a few Last i checked crypto mining operations Actually emit less relative to the Energy sources in their area simply Because they gravitate towards renewable Energy sources which are again much Cheaper than fossil fuels in most places The authors take it to another level When they note that quote mining Minerals and producing steel and other Materials for computing equipment also Emit ghgs have they not heard about all The materials that have to be mined to Create all the batteries required for Renewable energy and evs To me this outrageous comment confirms That the authors are coming from a camp That believes crypto has no value Whatsoever In the same sentence the authors even Admit that quote The majority of emissions associated With crypto assets come from electricity Generation to run crypto asset mines Totaling about 79 percent to 99 of life Cycle emissions yet somehow the Emissions associated with crypto Hardware are enough of a justification For a crackdown I guess you can’t have it both ways Unless of course you’re the government The authors then turn to the topic of Mining cryptocurrency with methane gas

And renewable energy something you’ll Recall wasn’t mentioned at all in the Summary which is a problem given that It’s probably the only section that Politicians and regulators will bother Reading Good thing i’m hearing Now the authors consider the potential Of using crypto mining operations to Convert methane gas into co2 something That is still not exactly Environmentally friendly but drastically Reduces the much higher emissions Associated with methane gas release What’s strange is the author’s note that Quote climate policy aligned with Achieving net zero emissions would have Zero methane venting and zero methane Flaring now it’s not entirely clear if They mean zero as in crypto miners using These vents and flares for energy or Zero meaning the vents and flares are Closed It seems to be the former as the authors Also note quote crypto asset mining that Installs equipment to use vented methane To generate electricity for operations Is more likely to help rather than Hinder us climate objectives Just when you thought the authors Admitted that crypto can be used to Fight climate change however they pause The parade by pointing out that quote Unless the co2 is captured and stored

Using vented methane at oil and gas Wells will still generate co2 emissions And contribute to climate change Then they finally admit that there are Two ways crypto mining can be used to Achieve net zero emissions The first is to create a base load of Demand for renewable energy sources so That they can expand and the second is To ensure efficient operations of Renewable energy grids Finally Now i couldn’t help but chuckle when the Authors suggest quote to help u.s Climate objectives industries could Volunteer or be required to build zero Carbon energy capacity that produces More electricity than the crypto asset Mine requires selling excess clean Energy back to the grid why do i feel Like it will be the latter rather than The format Naturally the authors fear that crypto Mining could misalign the economics of Renewable energy with renewable energy Suppliers purposely setting up their Operations to make more money from the Crypto miners rather than selling it to Local communities or building up their Reserve capacity gee it’s almost like Regulations create more issues than they Solve Next the authors turn to the other Environmental factors involved in crypto

Mining including air and water pollution Noise and electrical waste The authors basically find every single Possible scenario where crypto mining Could cause issues even pinning the Effects of electricity production on Their operations not surprisingly there Aren’t any statistics to back up any of The claims the authors make here Especially those related to air and Noise pollution the only statistic Relates to water use of crypto mining Which can be as high as a single us Household every year for a full mining Rack the horror After emphasizing that crypto are Somehow to blame for the environmental Impacts of the energy sources in the Areas they operate in the authors Unironically say quote While there is a lack of published Scientific research on fan noise Numerous media reports describe the loud Irritating and nearly continuous noise Caused by fans at crypto asset mining Centers And last but not least the authors Tackle electronic waste which is Actually a legitimate concern when it Comes to the specialized asic machines Used in crypto mining operations that’s Because they can’t really be used for Anything else once they’ve reached the End of their average shelf life of one

To two years Interestingly the authors don’t seem to Be that worried about the e-waste Associated with crypto-mining partially Because it’s an issue faced in other Industries as well and partially because They seem to believe that asic miners Could be recycled for their quote Critical minerals The fourth and final section of the Report is about how quote emerging Digital asset technologies could support Climate monitoring or mitigation and You’ll recall that the authors didn’t Have much to say about this in their Summary earlier on The authors begin by admitting that Measuring the impacts of pollution Biodiversity climate change and all the Other environmental buzzwords are quote Uncertain in their scope and timing can Play out over many years and can be Difficult to account for using Traditional accounting measures big Think The authors then talk about the carbon Credit market which is really nothing More than the ponzi scheme given that it Allows some companies to get millions of Dollars from the government for being Green while simultaneously allowing Polluters to continue polluting and Speculators to make big bucks If you need more evidence consider that

Quote to date administrators of Compliance markets have not adopted Blockchain or dlt a central authority Regulates and controls the process of Issuing and surrendering carbon Allowances there’s a good reason for This hint it’s the same one as to why There’s no blockchain voting Case in point even the authors admit That quote some stakeholders have raised Concerns that existing carbon credits May not represent additional permanent Reductions in ghg emissions This makes me wonder what stakeholders The authors are referring to given that This term is often used in the context Of the world economic forum specifically To describe the elites that gather in Davos every year to discuss the future Of the world without our input more About that in the description Now the authors ironically claim that The absence of dlt use in the carbon Credits market is because it would mask The entities involved which is really Nothing more than a lame excuse given That governments regulators and others Have no scruples applying kyc to Permissioned dlts in other contexts To be fair the authors are 100 correct When they note that quote The challenges relate to verification Of the real asset not to trading of the Title to the asset let’s not tell the

Nft holders about that one shall we Jokes aside the final topic the authors Turn to is the use of blockchain in Quote distributed energy resources and This is where the authors unleashed the Dystopian dark side of centralized Energy grids that i was ragging on about Earlier The authors touch on the use of Blockchain in so-called smart grid Technology which quote has the potential To harness the services of millions of Distributed energy resources ders such As electric vehicles fuel cells Residential and commercial battery Systems and solar power systems to Enhance grid reliability if you want to Know what that looks like look no Further than texas where power companies Recently automatically raised the Temperatures on smart home thermostats In the state to conserve energy it may Have been necessary but it sets an Extremely dangerous precedent and Foreshadows much worse Surprisingly the authors suggest that Quote dlt-supported innovation could Help digitize automate and decentralize The operation of the electricity grid Since many energy users could also Become energy producers say people with Solar panels on their homes generating Extra energy Unfortunately the authors seem to admit

That this system would not be all that Decentralized as quote efficient and Secure market participation of 100 Million ders will require digital Control of the electricity grid and more Autonomous and distributed control than Is possible with today’s technologies You heard that right autonomous control Of your energy usage i’m starting to Understand why the authors didn’t Discuss this in the summary The idea of the government and its ai Controlling your household appliances is Not very appetizing let’s just hope that A crypto project comes up with a way of Doing this before the government does This brings me to the big question and That’s what this report means for the Future of bitcoin To be blunt i think we’re going to see Lots of crazy proposals come from the Current u.s administration before its Term is up and some of these proposals Might be passed depending on the outcome Of the midterm elections to be clear Moving away from fossil fuels is a good Thing and it’s arguably inevitable As we’ve recently seen however moving Away from fossil fuels too quickly is Likely to result in a lot of personal Social and economic harm The people in power don’t seem to mind Though because it’s a perfect way to Take control

This is clear in the rhetoric of the White house’s crypto report which is Inconsistent at best and many of the Premises it’s based on are completely Incorrect The reality is that crypto mining is Fundamentally irrelevant to the climate Change and energy issue on both sides of The argument allow me to explain Crypto mining uses a sliver of the World’s energy and accounts for even Less of the world’s total carbon Emissions when you cite the actual Science I’ll also reiterate that the energy use And emissions associated with crypto Mining are or were already cut by Ethereum’s transition to proof of stake Logically then this means that the Demand for green energy coming from Crypto mining operations is similarly Inconsequential and it simultaneously Proves that crypto mining operations Could continue to grow alongside Renewable energy without damaging the Environment or disrupting the Electricity grid While politicians and their so-called Scientists aren’t fans of the facts the Free market is and that’s why there’s no Chance that bitcoin will be banned in The united states Case in point brad sherman one of the Most anti-crypto politicians in the usa

Recently admitted a btc ban is off the Table due to investors and it’s not just Any investors either blackrock fidelity And other asset managers and big banks Have begun dipping their toes into Crypto and you can bet they won’t let Their clients get wrecked because of Unreasonable crypto regulations for the Assets they’re offering Just like the bitcoin mining statistics However there’s a bit of a paradox here Because the asset managers and big banks Do in fact have a huge influence over Regulations It therefore begs the question of Whether they’re supportive of the ideas In this crypto report and this does seem To be the case Well if you watched our aforementioned Video about esg you’ll know that esg Ratings firms have been collecting the Details of all the most important Entities in the bitcoin ecosystem and Blackrock and co have been investing Heavily in bitcoin mining operations This is because bitcoin can’t be Controlled like the proof-of-stake Cryptocurrencies the people in power are So fond of mainly because it doesn’t Have a governance mechanism By economically capturing developers and Miners however wall street could find a Way to exert more influence over bitcoin That’s why i suspect that most of the

Crypto mining regulations we’re likely To see will relate to disclosures around Details of crypto mining operations Under the guise of climate-related Energy oversight This kind of regulation would likely Receive bipartisan support as it’s Innocent on the surface What happens after that is anyone’s Guess but it ultimately depends on how Bitcoin’s hash rate is distributed If too much of the hash rate is coming From the united states it could create Some serious centralization concerns for Bitcoin the same way it did with china In the past The difference is that the united states Doesn’t mess around when it comes to Oversight and that means there could Truly be a risk of regulatory capture This is unlikely to happen however and That’s because of the increasing use of Btc by other countries namely el Salvador and sanctioned nations like Iran If btc’s use becomes widespread in International trade it’ll create an Economic incentive for other countries To start their own bitcoin mining Operations to ensure the united states Can’t censor any transactions at that Point btc will be perfectly positioned To become the world’s reserve currency You can learn more about that

Possibility using the link in the Description That’s all for today’s video about the White house’s crypto report if you found It as ridiculous as i did be sure to Share it so other people can be shocked Too if you want to give it a boost with The algorithm smash that like button If you want to make sure you don’t miss My next crazy crypto report summary Subscribe to the channel and ping that Notification bell While you wait you can check out coin Bureau clips for live streams and Emergency market updates and tune in to The coin bureau podcast for in-depth Crypto conversations You can also follow me on twitter tiktok And instagram for memes and amas and Join my telegram channel for daily Crypto market updates If you’re wondering which cryptos i hold As part of my portfolio you can Subscribe to my weekly newsletter it’s Also where i tell you what’s coming next For the crypto market And if you want to support the channel Head on over to the coin bureau merch Store and get your hands on a sweater Hoodie and some socks to make sure you Stay warm this winter while also of Course staying crypto You can find your way to all these Resources and more using the links in

The description thank you all so much For watching and i will see you next Time this is guy bidding you Bye [Music]