hi everybody this is charles hoskinson broadcasting live from warm sunny colorado always warm always sunny sometimes colorado today is september 8 2022. first our grievances and condolences uh to the royal family for the death of the queen she was a remarkable person and lived a remarkable life and i'll probably make a video specifically about her a little later but today's video is on climate energy implications of crypto assets in the united states of america so why the hell would i make a video about that well a white house report just came out and i want to share with all you guys let's take a look at it so september 2022 at the white house and on march 9th president biden signed executive order 14067 quote ensuring responsible development of digital assets end quote to support responsible digital asset development in line with our climate change objectives and for the benefit of everyone in america the president directed the white house office of science and technology policy ostp and its partners from the executive office of the president across federal agencies to examine the connections between distributed ledger technologies and energy transitions uh the potential for these technologies to impede our advance efforts to tackle climate change at home and abroad and the impacts of these technologies have on the environment the report provided the assessment directed by the executive order okay so what talked to a bunch of different agencies we had a chance tangentially to talk to them through nist and this is the product of several months of hard work and you'll notice something that cardano is actually referenced five times in the president's report on page 10 page 31 page and some tables page 32 and then again on 32 and then finally in the footnotes right there for some context on energy consumption so you got to be very careful with administrations that are very politically skilled so the biden administration in particular they've been around for very long time and these administrations they tend to bury very important things in bureaucracy so the vast majority the super majority of american citizens will never see this report never care about this report have nothing to do with this particular report but if you go to page seven right here again just bury these things deep inside the guts of bureaucracy to ensure the responsible development of digital assets recommendations including the following actions for consideration the very first bullet point minimize ghg emissions okay so what's ghg emissions those are the emissions for running a blockchain environmental justice yeah you gotta love that everything is justice now impacts and other impacts for crystal assets so the epa and the department of energy and other federal agencies should provide technical assistance and initiate a collaborative process with states communities in the crypto asset industry and others to develop effective evidence-based environmental performance standards for the responsible design development use of environmentally responsible crypto asset technologies so in other words epa and doe are going to start talking to crypto companies should talk to them to basically tell them to change the way that their cryptocurrencies work and which way well these should include standards for very low energy intensities low water usage low noise generation clean energy usage by operators and standards that strengthen over time for additional carbon free generation to match and exceed additional electricity load of their facilities should these measures prove ineffective at reducing impacts they always bury the lead 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 mining in other words bitcoin should be banned that's how you read that now it's kind of funny that all the bitcoin maximalists when the uh lemus bill came out were advising senator lummus and uh and gillibrand to ban proof of stake and use the heavy hand of government to go after us but boy does it [ __ ] suck when the shoe is on the other foot doesn't it that the white house is now basically hiding in page seven a report no one will ever see a read hey mia nice thing you got there with proof of work but uh you know you know global warming bad so we should ban it and we'll soft ban it by having the epa and doe come in and basically create standards that you can't adhere to and then when you can't create some form of executive order or legislation to basically prevent you from being able to do it or destroy your profit margins so it's no longer profitable for the american mining industry sucks doesn't it so that's how governments work especially the united states government they're like this uh they say one thing and they do another thing they tell you there's going to be a great policy and then a committee comes together that you've never heard you know nothing about you've never seen and they draft a report basically saying the most valuable cryptocurrency in the world probably is illegal should be because carbon that's simple we watch and pepperidge farmer members we remember we uh we listen to these things we see these things so every now and then i bring this to people's attention now we predicted that this was going to be a huge fight as an ecosystem which is why i've been pushing very hard for proof of useful work because then your consensus algorithm does more than just secure a cryptocurrency it also provides a large distributed computer for hire so the same regulations will hit data centers you know big computing centers the stuff amazon does and microsoft does will then apply to cryptocurrencies as well because you get a big computer out of the game so we have a protocol called ophelomos that we developed specifically for this and we showed that protocol at crypto just recently highly recommend you guys check it out and take a look at it and uh our recommendation is that bitcoin consider adopting this and maybe one day we'll write a bip to talk about it we'll also see if we can get other people to do that now i doubt that that community is going to move in that direction but it's very clear that there are people in this administration and in various political parties throughout the world that really do want to start carbon scoring the mining of cryptocurrencies now i've also always taken the position that proof of stake is a vastly superior consensus mechanism in many ways assuming you can address the network design requirements and the security requirements which is why we spent seven years of innovation with oro boris and brought it to market and the report does accurately reflect that we have a massive advantage in terms of energy usage this is not the only governmental report generated that mentions proof of stake and cardano specifically now the bitcoin maximalists because their religion will refuse to acknowledge or believe that proof of stake in any capacity is legitimate that's their prerogative but it's very clear that there's a red target now on their back and actually for those who want to ban cryptocurrencies they have the one-two punch of saying mining should be banned because it's not ecologically friendly and proof of stake should be banned because they're securities so wait a minute do we have any options yeah of course you do use jpmorgan chase or goldman sachs use a cbdc use a centralized offering isn't that banning cryptocurrencies all together pay attention this is how they get you they don't get you in big speeches they don't get you uh you know while uh well at a presidential debate or arguing on the floor of the senate they kill you with bureaucracy they get you with subtle little reports that are written that have recommendations embedded within them uh saying subtle little things that a bureaucrat that you've never met have no influence or power over and cannot be fired basically gets to have unilateral authority over your life your livelihood and your ability to participate that is what they do and this is how they're going to try to get the industry little by little it's just the same with going after cryptocurrencies instead of going after them directly because super expensive and hard why don't you go after the exchanges and destroy liquidity see different routes same outcome so anyway just figured i'd share the report with you guys it's an interesting read there's a lot to it the authors of the report i don't think are bad people in fact i think they did a lot of good research and they put a lot of effort into it but it's very clear they were given an agenda which is minimize energy consumption and very rightfully so they recognize that when proof of work and proof of stake are put head-to-head the only option really is to choose a proof-of-stake protocol in that respect and you can't really do much more about it so of course they're going to make a recommendation to get rid of the energy-intensive stuff because for all things being equal and they're not an ideologue if proof-of-stake works there's really no functional reason in their mind to use proof-of-work now there may be regulatory reasons there may be other things and uh the industry is going through that and one day we will have clarity especially if fia is passed but for the time being we're kind of this bizarre catch 22 aren't we so just remember government is not your friend never has been never will be and doesn't care about you and is never accountable when they [ __ ] your life up and you can never get it back can't sue them can't recover the fees that you spend fighting them and even if you win you still lose because they find a way to hit you again that's the way it is and that's the way it's always going to be and this is why we build cryptocurrencies is why we have an industry because we'd like to change things and actually make it a little bit better and more fair and inclusively accountable and so forth and i for what i'm getting real tired of this duplicity and these types of reports being slid through this is largely in american industry the cryptocurrency industry we've created millions of jobs and created over a trillion dollars as an industry of value and we have a lot of great engineers a lot of great scientists the american universities are leading in research output for cryptocurrencies and if we want this can be a 10 or 20 trillion dollar business reports like this if implemented damage that harm that offshore that and it goes somewhere else and how many microsofts and apples and googles can you lose as a nation before your nation collapses and how in god's name are we gonna pay back whatever it is 30 trillion dollars who knows of national debt that we have if we can't grow our way out of it i don't know so these things are getting increasingly more personal uh you know it used to be hypothetical stuff but it's hard to argue with the white house report basically saying well you know if you can't get the doe to do it use an executive order or legislation to ban it as uh that's getting too close to home for me so anyway i figured i'd bring it to your guys's attention for your reading pleasure and the title of the report is the title of this video uh and to the bitcoin maximalists out there you reap what you sow and if you try very hard to use the government to cuddle your opponents don't be surprised when they use the very same club to hit you in the head maybe it's time we work together as an industry maybe it's time we unify a little bit and we stop calling everybody we disagree with evil and a scammer and recognize that there are much bigger problems and concerns that if we're divided we will not have the resources or ability to overcome for our industry or maybe not choice is yours
