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Monthly Archives: March 2024
Congress Should Give Up on Unconstitutional TikTok Bans – EFF
Posted: March 18, 2024 at 11:33 am
Congress unfounded plan to ban TikTok under the guise of protecting our data is back, this time in the form of a new billthe Protecting Americans from Foreign Adversary Controlled Applications Act, H.R. 7521 which has gained a dangerous amount of momentum in Congress. This bipartisan legislation was introduced in the House just a week ago and is expected to be sent to the Senate after a vote later this week.
A year ago, supporters of digital rights across the country successfully stopped the federal RESTRICT Act, commonly known as the TikTok Ban bill (it was that and a whole lot more). And now we must do the same with this bill.
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As a first step, H.R. 7521 would force TikTok to find a new owner that is not based in a foreign adversarial country within the next 180 days or be banned until it does so. It would also give the President the power to designate other applications under the control of a country considered adversarial to the U.S. to be a national security threat. If deemed a national security threat, the application would be banned from app stores and web hosting services unless it cuts all ties with the foreign adversarial country within 180 days. The bill would criminalize the distribution of the application through app stores or other web services, as well as the maintenance of such an app by the company. Ultimately, the result of the bill would either be a nationwide ban on the TikTok, or a forced sale of the application to a different company.
The only solution to this pervasive ecosystem is prohibiting the collection of our data in the first place.
Make no mistakethough this law starts with TikTok specifically, it could have an impact elsewhere. Tencents WeChat app is one of the worlds largest standalone messenger platforms, with over a billion users, and is a key vehicle for the Chinese diaspora generally. It would likely also be a target.
The bills sponsors have argued that the amount of private data available to and collected by the companies behind these applications and in theory, shared with a foreign government makes them a national security threat. But like the RESTRICT Act, this bill wont stop this data sharing, and will instead reduce our rights online. User data will still be collected by numerous platformspossibly even TikTok after a forced saleand it will still be sold to data brokers who can then sell it elsewhere, just as they do now.
The only solution to this pervasive ecosystem is prohibiting the collection of our data in the first place. Ultimately, foreign adversaries will still be able to obtain our data from social media companies unless those companies are forbidden from collecting, retaining, and selling it, full stop. And to be clear, under our current data privacy laws, there are many domestic adversaries engaged in manipulative and invasive data collection as well. Thats why EFF supports such consumer data privacy legislation.
Congress has also argued that this bill is necessary to tackle the anti-American propaganda that young people are seeing due to TikToks algorithm. Both this justification and the national security justification raise serious First Amendment concerns, and last week EFF, the ACLU, CDT, and Fight for the Future wrote to the House Energy and Commerce Committee urging them to oppose this bill due to its First Amendment violationsspecifically for those across the country who rely on TikTok for information, advocacy, entertainment, and communication. The US has rightfully condemned other countries when they have banned, or sought a ban, on specific social media platforms.
Montanas ban was as unprecedented as it was unconstitutional
And its not just civil society saying this. Late last year, the courts blocked Montanas TikTok ban, SB 419, from going into effect on January 1, 2024, ruling that the law violated users First Amendment rights to speak and to access information online, and the companys First Amendment rights to select and curate users content. EFF and the ACLU had filed a friend-of-the-court brief in support of a challenge to the law brought by TikTok and a group of the apps users who live in Montana.
Our brief argued that Montanas ban was as unprecedented as it was unconstitutional, and we are pleased that the district court upheld our free speech rights and blocked the law from going into effect. As with that state ban, the US government cannot show that a federal ban is narrowly tailored, and thus cannot use the threat of unlawful censorship as a cudgel to coerce a business to sell its property.
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TELL CONGRESS: DON'TBAN TIKTOK
Instead of passing this overreaching and misguided bill, Congress should prevent any companyregardless of where it is basedfrom collecting massive amounts of our detailed personal data, which is then made available to data brokers, U.S. government agencies, and even foreign adversaries, China included. We shouldnt waste time arguing over a law that will get thrown out for silencing the speech of millions of Americans. Instead, Congress should solve the real problem of out-of-control privacy invasions by enacting comprehensive consumer data privacy legislation.
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U.S. House Votes in Favor of TikTok Ban Bill Amid First Amendment and Other Questions – Democracy Now!
Posted: at 11:33 am
The House overwhelmingly voted Wednesday in favor of a bill that would force TikToks Chinese owner ByteDance to either sell the social media app or face a ban in the U.S. Backers of the bill claim TikTok poses a national security threat and could be used for surveillance by the Chinese government. Rights groups like the ACLU say such a ban would violate the right to free speech. There are around 150 million TikTok users in the U.S. alone. After voting, two of the lawmakers who voted against the measure, Democrats Ro Khanna and Pramila Jayapal, laid out some of the bills issues.
Rep. Ro Khanna: Its an overly broad bill that I dont think would stand First Amendment scrutiny. The other issue is that there are a lot of people who make their livelihoods on this.
Rep. Pramila Jayapal: There are timeline questions. A hundred and eighty days to sell a company this size is very difficult. What happens to antitrust law? Does it still apply? Does it not apply? And I think, you know, the questions of if this is a de facto ban, I think that is a real problem. And so but I also have problems by the way, four countries are named, but if Saudi Arabia buys it, is that fine?
The measure will now be taken up by the Senate.
Meanwhile, Palestinian rights activists say Israels war on Gaza has galvanized anti-TikTok sentiment in conservative and centrist lawmakers. In a leaked post-October 7 audio recording, Jonathan Greenblatt, head of the Anti-Defamation League, can be heard saying, We have a TikTok problem, referencing declining public support for Israel among younger people. The progressive group RootsAction also noted that AIPAC is the top donor to Congressmember Mike Gallagher, who authored the TikTok ban bill. This comes as Donald Trump flipped his position on the bill within the last week, now opposing the ban, after recently meeting with GOP megadonor Jeff Yass. Yasss company holds a 15% stake in ByteDance.
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U.S. House Votes in Favor of TikTok Ban Bill Amid First Amendment and Other Questions - Democracy Now!
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Review of Amicus Briefs Filed in Murthy v. Missouri Before the Supreme Court | TechPolicy.Press – Tech Policy Press
Posted: at 11:33 am
Related Reading:
On May 5, 2022, Missouri Attorney General Andrew Bailey filed a lawsuit (Missouri v. Biden) in the US District Court for the Western District of Louisiana, accusing the Biden administration, federal agencies, and top health officials of colluding with social media companies. The suit alleges government officials engaged in a coordinated campaign throughout the COVID pandemic to remove disfavored content and suppress the expression of disfavored views in violation of protected speech under the First Amendment of the United States Constitution.
The case primarily concerns jawboning, or informal government efforts to pressure private social media companies into limiting or removing speech on their platforms. After a winding series of appeals and preliminary injunctions in the Fifth Circuit, the US Supreme Court agreed to take up the case, now Murthy v. Missouri, in its 2023-24 term. The record is marred by questions over the characterization and veracity of the underlying evidence.
The three questions before the Court are the following:
Briefs were submitted to the Court by the US Solicitor General (on behalf of the Petitioner, Surgeon General Vivek H. Murthy), the respective States, and other parties either in favor of Murthy or the states or neither party. To help Tech Policy Press readers better understand what arguments are being made by the amici, we put together short summaries. These summaries are intended to offer the broad contours of each brief, and thus do not always contain every argument contained within them. If the reader wants a complete version of any one brief, the link to the document is provided in the text.
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Review of Amicus Briefs Filed in Murthy v. Missouri Before the Supreme Court | TechPolicy.Press - Tech Policy Press
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Supreme Court defines when it’s illegal for public officials to block social media critics – The Verge
Posted: at 11:33 am
In an opinion signed by Justice Amy Coney Barrett, the Supreme Court established a test to determine when a public official can be considered to be engaging in state action in blocking someone from their social media account. The official must have both (1) possessed actual authority to speak on the States behalf on a particular matter, and (2) purported to exercise that authority when speaking in the relevant social-media posts.
The court issued a unanimous decision in Lindke v. Freed, a case about whether Port Huron, Michigan city manager James Freed violated the First Amendment by blocking and deleting comments on his Facebook page from resident Kevin Lindke, who critiqued Freeds pandemic policies. The test creates a new way to determine if an official can be held liable for violating a citizens First Amendment rights through actions on their social media pages.
But its not enough for a social media page to simply belong to a public official. Barrett wrote, The distinction between private conduct and state action turns on substance, not labels: Private parties can act with the authority of the State, and state officials have private lives and their own constitutional rightsincluding the First Amendment right to speak about their jobs and exercise editorial control over speech and speakers on their personal platforms.
The distinction between private conduct and state action turns on substance, not labels
Barrett suggested that simple disclaimers could make a difference in the determination. Here, if Freeds account had carried a labele.g., this is the personal page of James R. Freedhe would be entitled to a heavy presumption that all of his posts were personal, the ruling says, but Freeds page was not designated either personal or official.
Katie Fallow, senior counsel of the Knight First Amendment Institute at Columbia University said in a statement the court was right to hold that public officials cant immunize themselves from First Amendment liability merely by using their personal accounts to conduct official business.
But, Fallow added, We are disappointed, though, that the Court did not adopt the more practical test used by the majority of the courts of appeals, which appropriately balanced the free speech interests of public officials with those of the people who want to speak to them on their social media accounts. We hope that in implementing the new test crafted by the Supreme Court today, the courts will be mindful of the importance of protecting speech and dissent in these digital public forums.
The Knight Institute challenged former President Donald Trump in 2017 over blocking users from his @realDonaldTrump Twitter account. They argued his account was a public forum where people could not be excluded for their views, and the lower courts agreed. In 2021, when Trump was no longer in office, the Supreme Court ordered the lower court to vacate a ruling against Trump and dismiss it as moot.
Dhillon Law Group partner GaryLawkowskisaid in an emailed statement about the new ruling that the biggest impact of this opinion may not be the formal test set forth in its holdingrather, its language buried in the opinion that effectively creates a safe harbor for public officials who place disclaimers on their social media accounts, providing an easy way for public officials to stay on the personal side of the law going forward.
The justices vacated and remanded the case back to the lower court.
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Doctor sues state of WA for his First Amendment rights – KXLY Spokane
Posted: at 11:33 am
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Doctor sues state of WA for his First Amendment rights - KXLY Spokane
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ACLU To Defend NRA as Supreme Court Weighs Whether New York Violated Gun Group’s First Amendment Rights – The New York Sun
Posted: at 11:33 am
The Supreme Court next week will weigh an epic First Amendment clash that is expected to have ripple effects for government regulators and advocacy groups across the country.
At issue in the upcoming March 18 arguments is whether financial regulators in New York infringed upon the First Amendment rights of the National Rifle Association by pressuring companies to end business relationships with the group following a school shooting in 2018 at Parkland, Florida.
The NRA noting the immense power of New York financial regulators to oversee licensing, impose fines, and launch investigations contends that the superintendent of the states Department of Financial Services, Maria Vullo under the direction of Governor Cuomo abused that power by encouraging insurers and banks to blacklist the NRA because of their distaste with the groups Second Amendment advocacy.
Ms. Vullos attorneys argue in a brief that the case is about the rights of government employees to enforce the law and to speak out about matters of public concern without fear that their statements will subject them to damages actions brought by entities that espouse controversial views.
The NRA is represented by the Brewer, Attorneys & Counselors law firm and the American Civil Liberties Union. The ACLU has said that its willingness to align itself with the NRA on the case despite its strong opposition to the NRA on many issues highlights the First Amendment stakes in the case.
Substitute Planned Parenthood or the Communist Party for the NRA, and the point is clear, the ACLUs legal director, David Cole, noted at the time the NRA first sued in 2018. If Cuomo can do this to the NRA, then conservative governors could have their financial regulators threaten banks and financial institutions that do business with any other group whose political views the governor opposes.
In 2017, Ms. Vullo began investigating NRA-backed insurance coverage for gun users dubbed murder insurance by critics amid legal concerns that the programs insured intentional criminal activity. The investigation ultimately ended with the insurers and the NRA paying hefty fines.
Several months later, the NRA says it began facing intensified criticism for its pro-gun rights advocacy, and Ms. Vullo began singling out the NRA. The group alleges that Ms. Vullo began to meet with insurance executives that did business with the NRA, in which she explained her campaign to penalize the NRA for its gun-promotion advocacy.
Following those threats, the NRA says companies began dropping the organization, citing fears about not being able to do business in New York if it continued to provide coverage for the NRA.
Mr. Cuomo issued a press release at the time directing the Department of Financial Service to urge insurers, banks, and other financial services to review any relationships with the NRA and consider whether such ties harm their corporate reputations and jeopardize public safety.
He noted that multiple businesses had ended relationships with the NRA after the Florida school shooting in order to realign their companys values.
The states financial service department regulates more than 1,400 insurance companies with assets totaling more than $4 trillion, the statement noted. Ms. Vullo was also quoted encouraging all insurance companies and banks doing business in New York to join the companies that have already discontinued their arrangements with the NRA, and to take prompt actions to manage these risks and promote public health and safety.
Mr. Cuomo publicly denounced the NRA on multiple other occasions, urging businesses to cut off any relationships with the group.
The NRA is an extremist organization, Mr. Cuomo wrote on X, then Twitter, in April 2018. I urge companies in New York State to revisit any ties they have to the NRA and consider their reputations, and responsibility to the public.
Several months later, he boasted that New York was forcing the NRA into financial crisis, and that it was time to put the gun lobby out of business, tagging his post with #BankruptTheNRA. We wont stop until we shut them down, he wrote in another tweet.
The ACLU is urging the court to apply a ruling from Bantam Books v. Sullivan in 1963, which it notes established that informal, indirect efforts by government officials to suppress or penalize speech by putting pressure on third-party intermediaries violate the First Amendment just as much as direct censorship.
If the NRA prevails, it will be positioned to pursue damages against Governor Cuomo, Maria Vullo, NYAG Letitia James, and the State of New York. The message will be loud and clear: the First Amendment belongs to the people, and public officials cannot wield government power to censor, suppress, or bankrupt their political enemies, NRAs counsel, William A. Brewer III, tells the Sun.
The case is important to any advocacy organizations that rely on First Amendment protections, he adds.
Though the NRAs First Amendment claims prevailed at the district court, the Second Circuit Court of Appeals reversed the decision, ruling that Ms. Vullos correspondence with financial institutions did not violate the NRAs free expression. The Court noted that the First Amendment does not impose a viewpoint-neutrality requirement on the governments own speech.
Citing the Second Circuit ruling, Ms. Vullos counsel, Neal Katyal of Hogan Lovells, tells the Sun that the superintendent did not engage in any coercive or otherwise improper behavior. Rather, it was the NRA that was in the wrong by selling illegal products, he contends.
This case has huge implications for the future of American regulatory law and the ability of public servants to communicate their positions on public policy, he says. At its core, this case asks a simple question: should the government be allowed to govern?
The NRA is targeting the government with meritless bad-faith lawsuits aimed at scuttling the most basic regulatory functions, he adds. Their position relies on an extreme and unworkable interpretation of the First Amendment and runs counter to a unanimous panel of the Second Circuit and decades of well-established Supreme Court precedent.
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ACLU To Defend NRA as Supreme Court Weighs Whether New York Violated Gun Group's First Amendment Rights - The New York Sun
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What Meltdown? Crypto Comes Roaring Back in the Philippines. – The New York Times
Posted: at 11:31 am
On a recent Tuesday night, around 20 people crowded into the second floor of Joniel Bons newly opened internet cafe in Quezon City, 10 miles from Manila. Seated at computers with 34-inch curved monitors, they began playing video games such as Heroes of Mavia and Nifty Island, as music from Taylor Swift and Maroon 5 hummed from the speakers.
Playing these games can be a full-time job, and some of Mr. Bons customers had settled in for the night with slices of pizza to fuel them. The games reward players with cryptocurrency tokens for completing small, daily challenges. Often, players convert their tokens to pesos, the countrys currency, earning around twice the Philippines minimum wage of $11 a day.
Mr. Bon, 40, had dreamed about the buzz of activity at his own business after cryptocurrencies crashed spectacularly two years ago, dashing his hopes for a thriving game collective at the time.
There was a point I had to say, I believe in this. I had to hope, said Mr. Bon, a former information-technology worker. We survived.
Mr. Bons new internet cafe is a sign of how crypto has begun booming again in the Philippines, which has long been a center of crypto activity. This month, Bitcoin reached a record high, capping a comeback from the 2022 market meltdown and bringing other digital currencies like Ether along with it. On Monday, Bitcoin was trading at around $67,000.
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What Meltdown? Crypto Comes Roaring Back in the Philippines. - The New York Times
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Chinas cryptocurrency investors made gains of US$1 billion in 2023 – South China Morning Post
Posted: at 11:31 am
Hong Kong cryptocurrency investors realised gains of US$250 million last year, according to Chainalysis. In 2021, they made US$1.3 billion.
Overall, cryptocurrency investors around the world recorded total gains of US$37.6 billion in 2023, down from the US$159.7 billion during the 2021 bull market, according to Chainalysis.
Still, last years gains represent a significant recovery from 2022, which saw losses reach US$127.1 billion.
In both 2021 and 2023, US cryptocurrency investors realised the biggest gains in the industry, according to Chainalysis, when they made US$47 billion and US$9 billion, respectively.
The gains pulled off last year by mainland investors showed how the nations community of cryptocurrency enthusiasts has continued to thrive, despite Beijings rigid stance against all activities related to the virtual asset.
Chinas back-door cryptocurrency traders look more important than ever to Binances future
Chinese social media all agog as bitcoin prices continue to surge
If these trends continue, we may see gains more in line with those we saw in 2021, Chainalysis said. As of March 13, bitcoin is up 65.4 per cent and ether is up 70.2 per cent.
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Chinas cryptocurrency investors made gains of US$1 billion in 2023 - South China Morning Post
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Cryptocurrency Miners Need to Report their Energy Use – Earthjustice
Posted: at 11:31 am
Recently several cryptocurrency mining companies sued the U.S. Energy Information Administration (EIA) rather than respond to a survey on their energy use. After several instances in which energy-intensive proof-of-work cryptocurrency mining threatened to destabilize the grid and led to price spikes, the EIA, an agency of the Department of Energy, initiated a provisional survey of electricity consumption for U.S. cryptocurrency mining companies in February 2024. That initial survey was halted by the industry lawsuit, but the EIA will now proceed with a public comment process on reporting requirements for cryptocurrency miners, the first step toward establishing permanent requirements that miners report their energy use data.
Every other major energy-using industry reports this type of data to the EIA, so that the EIA can produce studies and reports to help utilities, grid operators, and regulators with their energy planning. As the EIA recognized, there is a compelling need for the cryptocurrency industry to begin to account for its growing energy demands, which have threatened to overwhelm current systems for ensuring reliable electricity service and raised electricity prices in states where they have significant operations.
Earthjustice and partners urged the EIA in 2022 to collect such data because the lack of transparency and regulation of these highly polluting and energy intensive operations means the public and regulators cannot fully understand the true impact of their operations on the grid and local communities.
Cryptocurrency mining is an extremely energy-intensive process that threatens the U.S.s ability to maintain the stability of our grid and electricity rates, as well as our ability to reduce our dependence on climate-warming fossil fuels. In its February 2024 analysis, EIA estimated that cryptocurrency mining in the U.S. may represent up to 2.3% of total U.S. electricity demand.
Although cryptocurrency mining operations have become increasingly specialized, concentrated, price-sensitive, and capital intensive and thus identifiable as a distinct class of business and energy user it is difficult or impossible to find information about the scale, location, or fuel source of many cryptocurrency mining operations in the United States.
Cryptocurrency mining is largely invisible to U.S. regulators with little-to-no reporting requirements at either the state or federal level. Currently, the primary sources for publicly available information about cryptocurrencys energy usage and environmental impacts are local journalists, company press releases, and Securities and Exchange Commission (SEC) filings for publicly-traded cryptocurrency mining companies. Among those the few companies that do file reports with the SEC, many do not disclose the locations or fuel sources associated with the miners listed in their financial reports, or when they do provide only partial, selective, or misleading information, such as describing their energy supply as environmentally beneficial, reliable, renewable or as having high emissions free content.
The EIA has the legal authority to collect data on energy use from cryptocurrency miners, as it does from the manufacturing industry and other industries, in order to provide reports to inform energy planning decisions throughout the country. The reporting burdens are minimal.
Regulators and the public have the right to know this information because as EIA noted in times of peak demand such as cold snaps or heat waves, the energy demands of cryptocurrency miners can affect grid operations and cause blackouts and brownouts. It is not only appropriate for EIA to collect information on such a large consumer of electricity, but such collection is necessary for utilities and the public to have the information they need to appropriately assess the grid, climate, price, and local implications of the cryptocurrency mining industry in additional to individual operations.
Take it from the grid operators themselves: last summer, the Texas state grid operator, ERCOT, warned that cryptocurrency miners exhibited inconsistent behavior during resource scarcity events that brought the grid perilously close to failure. ERCOT noted that lack of transparency and coordination about cryptocurrency miners energy consumption during both Winter Storm Uri and Elliot, and during heat waves, has impacted ERCOTs ability to adequately forecast energy demand and response. ERCOT explicitly noted that crypto miners have exhibited inconsistent behavior during Resource scarcity events and if crypto miners had not voluntarily curtailed on June 20, 2023 ERCOT would have been forced into Emergency Operations.
The Tennessee Valley Authority (TVA), which covers large areas in seven states, has had to make significant adjustments to accommodate the growth of cryptomining and its impacts on electricity service and rates.
Last year in Kentucky, the Public Service Commission denied a proposed discounted electricity rate contract for a cryptomining facility out of concern that it could not be relied upon to curtail its load if needed during peak energy periods and that its demands on the grid would increase costs for all of the utilitys customers.
A government report on Winter Storm Elliott found that one of the major factors leading to deadly blackouts during the storm was the failure of utilities to reliably predict demand. ERCOT noted that lack of transparency and coordination about cryptocurrency miners energy consumption during both Winter Storm Uri and Elliot impacted ERCOTs ability to adequately forecast energy demand and response. ERCOT is projecting that cryptocurrency mining will consume 37 GW by 2028.
Utilities and grid operators must have reliable, up-to-date information on cryptocurrency mining operations in order to maintain the stability of the grid, especially when energy generation may be scarce. Indeed, EIA has determined that there is an urgent need for this information, requesting emergency review and citing national grid monitor NERCs 2023 Long-Term Reliability Assessment which warned that cryptocurrency mining has a significant effect on the grid.
As cryptocurrency mining operations expand in the U.S., electricity prices spike for other ratepayers. We documented examples of this in Washington, New York, Kentucky, and more.
In Texas, Bitcoin mining has already raised electricity costs for non-mining Texans by US$1.8 billion per year, or 4.7%, according to conservative estimates from consulting firm Wood Mackenzie.
Similarly, a BloombergNEF report, ERCOT Market Outlook: Everything Depends on Bitcoin, found that energy prices in Texas will soar for consumers if Bitcoin mining continues its rapid expansion. Models show peak energy prices increasing by 30% in one scenario in which the amount of cryptomining peak load roughly triples, and increasing by around 80% in a scenario in which the amount of cryptomining peak load increases around sixfold. The report states, ERCOT power prices will be a function of new bitcoin mining facilities.
Ratepayers should not be left on the hook for the massive energy consumption of cryptocurrency mining. The EIA should collect this information to give grid operators, electric service providers, and the public full access to information about the size, location, and characteristics of cryptocurrency mining operations in the US.
In addition to impacting grid stability and electricity rates for customers, cryptocurrency mining keeps coal and gas plants online, causing local air and water pollution and long-term climate harm. Due to the lack of transparency surrounding information on cryptocurrency mining operations and how they procure power, it is impossible to precisely assess the emissions intensity of cryptocurrency mining operations in the U.S. The EIA consistently tracks and reports on the emissions intensity of power generation in the U.S., and it is appropriate for them to collect emissions-related information from cryptocurrency mining operations too. Earthjustice urged the EIA to collect the data both by expanding its Manufacturing Energy Consumption Survey (MECS) to include cryptocurrency mining, and by ensuring that its surveys of electricity generators capture information about direct service or behind-the-meter electricity diversion to cryptocurrency miners.
In addition to air and water pollution, cryptocurrency mining operations create substantial noise pollution in local communities, resulting in health impacts as reported in Arkansas and Texas. The public deserves information about these operations that impact their everyday lives.
The EIA must proceed with its efforts to gather and publish this information publicly so that host communities can accurately understand how their local environment may be impacted by cryptocurrency mining operations and so that the climate risks of this industry can be accurately assessed.
EIA must move swiftly to collect and analyze this data as soon as possible. EIA announced that it will now seek public comment on data collection. This could proceed fairly quickly over a few months, but only if the agency prioritizes it. Cryptocurrency mining operations cannot be allowed to continue to conceal their energy use. Cryptocurrency miners inconsistent behavior during times of peak energy demand has brought the grid perilously close to failure in Texas, nearly forcing blackouts.
The EIA must move forward with requiring this reporting as quickly as possible, to protect public health and safety. Utilities and anyone who depends on reliable, affordable electricity should support the EIAs effort to bring some transparency to this industry.
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Cryptocurrency Miners Need to Report their Energy Use - Earthjustice
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Understanding the Fundamental Differences Between Cryptocurrency and Fiat Currency – FinSMEs
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In recent years, the emergence of cryptocurrency has revolutionized the way we perceive and engage with currency.
Unlike traditional fiat currencies, which are issued and regulated by governments, cryptocurrencies operate on decentralized networks based on blockchain technology. This fundamental distinction creates a myriad of differences between the two forms of currency, ranging from their underlying principles to their practical applications.
This article explores these disparities and shows what makes cryptocurrency distinct from fiat currency.
At the core lies the concept of decentralization versus centralization. Fiat currencies are centralized, meaning they are issued and regulated by a central authority, typically a government or a central bank. This central authority holds the power to control the supply of money, influence interest rates, and intervene in monetary policies as deemed necessary.
On the other hand, cryptocurrencies operate on decentralized networks that rely on blockchain technology. These networks are distributed across a vast array of nodes, each contributing to the verification and validation of transactions. Decentralization ensures that no single entity has absolute control over the cryptocurrency network. Instead, consensus mechanisms, such as proof of work or proof of stake, govern the validation process, making cryptocurrencies resistant to censorship and manipulation.
Cryptocurrency has the potential to enhance accessibility and financial inclusion for individuals who are underserved or excluded by traditional banking systems. With cryptocurrencies, anyone with internet access can participate in the global economy, conduct peer-to-peer transactions, and access financial services without the need for a traditional bank account.
The above, coupled with the proliferation of mobile devices and internet connectivity, has further democratized access to cryptocurrencies, empowering individuals in developing countries to participate in the digital economy. Cryptocurrency wallets can be easily downloaded and installed on smartphones, providing a convenient and secure way to store and transact digital assets.
This in turn provides greater access to other services. For example, players living in regions where online gambling is restricted can access the best options for crypto gambling thanks to these digital currencies. This works as crypto is not regulated in the same ways as fiat currencies, so crypto casinos and sports betting sites dont fall under traditional regulations set for gambling.
Furthermore, cryptocurrencies enable cross-border transactions with lower fees and faster settlement times compared to traditional banking systems. This feature is particularly beneficial for remittance payments and international trade, where traditional banking processes can be cumbersome and costly.
Another differentiating factor between cryptocurrency and fiat currency is the level of transparency and immutability inherent in their respective systems.
Blockchain, the underlying technology behind most cryptocurrencies, provides a transparent and immutable ledger of all transactions ever conducted on the network. Every transaction is recorded in chronological order, forming a chain of blocks that cannot be altered retroactively without consensus from the network participants.
In contrast, the traditional banking system lacks the same level of transparency and immutability. While banks maintain records of transactions, these records are not always easily accessible to the public, and they can be subject to alteration or manipulation by centralized authorities. Cryptocurrencies, with their transparent and immutable blockchain ledgers, offer a higher degree of security and trust in the integrity of transactions.
The transparency provided by blockchain technology also fosters accountability and auditability in the cryptocurrency ecosystem. Anyone can inspect the blockchain to verify the validity of transactions, ensuring that no fraudulent or unauthorized activities take place. This level of transparency contributes to building trust among users and investors, bolstering the adoption of cryptocurrencies as a legitimate form of digital currency.
Monetary policy and inflation mechanisms differ significantly between cryptocurrency and fiat currency systems.
Central banks have the authority to implement monetary policies, such as adjusting interest rates and controlling the money supply, to stabilize economies and manage inflation. However, these policies are often subject to political influence and can lead to the debasement of fiat currencies through inflationary practices like quantitative easing.
In contrast, many cryptocurrencies, such as Bitcoin, have predetermined issuance schedules and fixed maximum supplies, making them deflationary by design. For instance, Bitcoin has a capped supply of 21 million coins, ensuring that inflationary pressures cannot devalue the currency over time. This scarcity model contrasts sharply with fiat currencies, which can be printed at the discretion of central authorities, potentially leading to currency devaluation and loss of purchasing power.
In conclusion, the differences between cryptocurrency and fiat currency go beyond their technicalities and encompass fundamental differences in principles, governance, and practical applications. While fiat currencies rely on centralized authorities and traditional banking systems, cryptocurrencies operate on decentralized networks with transparent, immutable ledgers.
Moreover, cryptocurrencies have the potential to enhance accessibility and financial inclusion by providing an alternative means of participating in the global economy. As the adoption of cryptocurrency continues to grow, it is essential to recognize and understand these differences to navigate the evolving landscape of finance and technology effectively. Cryptocurrency represents not only a new form of digital currency but also a paradigm shift in the way we conceive of and interact with money.
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Understanding the Fundamental Differences Between Cryptocurrency and Fiat Currency - FinSMEs
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