Proof-of-work (PoW) blockchains, such as bitcoin and pre-merger ethereum, have long faced criticism from environmentalists and some investors for consuming large amounts of electricity. According to the latest report of “The Block” yesterday (21), the CEOs of three major US banks (Citigroup, Bank of America, Wells Fargo) attended a hearing held by the House Financial Services Committee on Wednesday earlier and faced questions invariably. said it “has no intention of funding cryptocurrency mining programs.”
Rep. Brad Sherman, who has always urged regulators to strengthen the control of encrypted assets, bluntly asked the three CEOs at the meeting, “Are you going to fund cryptocurrency mining? It uses a lot of electricity, but it won’t light anyone’s lights, doesn’t help with cooking food either…”
Citigroup CEO Jane Fraser responded: “I don’t believe Citi will fund cryptocurrency mining
Bank of America CEO Brian Moynihan also said: “We don’t have any plans to do that.
Wells Fargo CEO Charles Scharf was more ambiguous, responding, “I don’t know anything about this topic.”
Renewable energy and clean green energy are the direction of the mining industry
According to the latest report of the White House in September, the United States currently has the world’s largest bitcoin mining industry. As of August 2022, its bitcoin network hash rate accounts for about 38% of the world’s total, and its total electricity consumption accounts for about 0.9 of the total energy in the United States. % To 1.4%.
But for miners, they are also actively investing in renewable energy. According to a survey report released by the Bitcoin Mining Committee (BMC) in July, it is estimated that 56% of the mining power in the entire network in Q2 2022 will use renewable energy. And Hass Mc Cook, a retired licensed civil engineer, also pointed out last year by analyzing multiple public data including the Cambridge University Alternative Finance Center and the International Energy Agency (IEA), etc., Bitcoin’s carbon emissions should “have peaked.” will continue to decline and may even reach the goal of carbon neutrality by 2031.
Miners’ profits continue to decline
It is also worth noting that miners are facing a dilemma of shrinking profits as the price of Bitcoin continues to fluctuate below $20,000. According to the current data of f2pool, if calculated at US$0.1 per kilowatt-hour of electricity, there are only 7 newer models of mining machine models that are still profitable at present. Among them, the Antminer S19 XP Hyd. model has the highest revenue. Daily returns are about $5.86.
And one of the most popular mainstream models “Antminer S19J”, the current daily profit is only 0.21 US dollars. Compared with the official price of 9,984 US dollars in Bitmain miners are facing a huge amount of money to break even and even make profits. pressure.
Post time: Sep-28-2022