NEW WHITEHOUSE REPORT ASSESSES ENVIRONMENTAL COSTS AND POTENTIALS OF CRYPTOS

As part of a Biden Administration Executive Order aimed at assessing cryptos, the Whitehouse has just issued a new report, titled “CLIMATE AND ENERGY IMPLICATIONS OF CRYPTO-ASSETS IN THE UNITED STATES.”

Crypto watchers were quick to read tea leaves concerning some of the cryptos mentioned in the document.

But the deeper takeaway is that the still very early innovation and use case cycle of cryptos leave a lot of room for debate with regard to the issues the report raises.

Among other things, the report signals that closer scrutiny and regulation of businesses, in terms of energy use reporting and more, will be part of crypto’s future.

Crypto Network Energy Use Estimated By Report

The Whitehouse report contained a table that garnered attention for mentioning specific cryptos in terms of energy use, though it offered no real surprises, focusing on the largest market cap cryptos.

Still, observers noted that Cardano, as the current largest proof-of-stake network—at least until Ethereum moves fully to proof-of-stake—seemed to find favor for its relative energy efficiency. 

Other comparatively smaller crypto networks including Polkadot, Algorand and Tezos also were cited in the report:

Another table showed crypto energy consumption compared to other energy uses:

But the report admitted the true level of crypto energy use is currently only a very rough estimate.

And it doesn’t explain exactly what designations like “U.S. Home Computers” encompass. Does that include gaming computers and consoles, which have notably higher graphics and computing energy use than, say a tablet or Chromebook?

One of the more interesting sections cited the emerging use of crypto technology in California’s “Flex Alert” system.

That system enables electricity companies to push out requests for energy conservation to consumers, during times of high usage and grid emergency.

According to the report:

“This system enables the electricity grid operator to push out requests for energy conservation during a grid emergency, securely interact with customers, and understand participation rates while maintaining customer anonymity.

“197,198 Beyond information exchanges, smart grid technology199 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. DLT could potentially serve as the digital ledger for the registration, authentication, and participation of these DERs in a smart grid, enabling flexible grid operations as more variable renewables are adopted. As with any new and still-maturing innovative technology, the ultimate utility of DLT in the electricity sector is unknown.” 

Colorado’s Xcel Energy electricity provider drew recent heavy criticism for a first-ever takeover of customer thermostats during a high usage point. In that case, the company previously gained the consent to control thermostat settings in times of emergency, by offering customers a relatively miniscule “AC Rewards” monetary credit.

Many were shocked to find out what they signed away with that program.

The full Whitehouse crypto report can be viewed here.