Crypto mining has been an area of intense regulatory and government scrutiny recently. Following China’s ban on Bitcoin (BTC) mining last summer, government chatter had been silent until the start of the year.
Governments Scrutinize Crypto Mining
In January, an energy crisis across Eastern Europe led to the Kosovo Government banning crypto mining. The government imposed a ban to curb energy consumption. By global standards, Kosovo only accounted for 0.01% of Bitcoin’s global hash rate in August 2021.
According to the Cambridge Centre for Alternative Finance, the U.S. was the largest, with a total Bitcoin mining hashrate of 35.4%.
As a result of the U.S ranking as the world’s largest Bitcoin miner, U.S Congress held a subcommittee hearing on Crypto-mining and the environment back in January. Bitcoin mining and Proof-of-Work protocols had a tough day of it on Capitol Hill.
Other governments have also become vocal on Proof-of-Work mining in general.
In January, European Securities and Markets Authority (ESMA) vice-chairman Erik Thedeen had called for a ban on Proof-of-Work (PoW) mining. Thedeen talked of the significant risks that mining poses to the environment. The ESMA vice chair added that EU regulators should encourage more environmentally friendly Proof-of-Stake (PoS) mining due to its significantly lower energy profile.
Global agencies have also stepped forward, vocalizing concerns over mining and the environment. These include Fitch Ratings and the U.S Inland Revenue Services.
With government and regulatory scrutiny heightened, there has been an even greater need for a more environmentally friendly Proof-of-Work Asic.
Intel Unveils new Bitcoin Asic Miner
In late January, we had reported an Intel (INTC) plan to enter the Bitcoin mining space.
Intel planned to introduce a new “Ultra-Low-Voltage-Energy-Efficient Bitcoin Mining Asic”. Intel aimed to “reduce overall power consumption by approximately 15%.”
According to the news wires, Intel unveiled the Bonanza Mine at the International Solid-State Circuits Conference (ISSCC). The conference runs from 20th to 28th February.
The Intel first-generation Bonanza Mine Asic includes a 300 BMZ chip, with a 3,600 Watts (W) power rating while delivering 40 terahashes per second (TH/s) of computer power. While with less power than leading Asic miners, the Bonanza Mine Asic is reportedly more energy efficient. Big names have signed up for the more energy-efficient Intel miner. These include Argo and Block.
On Wednesday, 23rd February, Intel will participate in a live Q&A session.
For governments raising concerns over Proof-of-Work mining, it remains to be seen whether the Bonanza Mine will satisfy.
This article was originally posted on FX Empire
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