The U.S. Department of Energy (DOE) is asking crypto miners to report their energy consumption over the next six months, following concerns that the recent rise in Bitcoin (BTC) prices is leading to a surge in crypto mining. ing.
On January 31, the U.S. Energy Information Administration (EIA), the statistical agency of the DOE, Said Starting next week, the company will begin a preliminary survey to understand the power usage of local crypto mining companies, with miners “required to provide details regarding their energy usage.”
The Office of Management and Budget greenlighted the investigation on January 26 after a state of emergency. request A few days ago, the EIA claimed that the price of Bitcoin “has increased by approximately 50% over the past three months” which “encourages more cryptomining activities, resulting in increased electricity consumption.” Ta.
Bitcoin rose more than 18.5% in the three months ending January 24, according to Cointelegraph Market Pro.
Public comments on cryptocurrency miners’ energy usage will also be collected.
We are starting to collect data on #electricity Use by the United States #cryptocurrency Miner.
Ask about their electricity consumption to better understand their energy needs.
https://t.co/gYpZgtiD6J pic.twitter.com/pQ9ULoLAAU
— EIA (@EIAgov) January 31, 2024
EIA Administrator Joe DeCarolis said, “We will focus specifically on how the energy demands of crypto mining are evolving and identify high-growth geographic regions that will be used to meet crypto mining demand.” Quantify the power sources that will be used.”
The investigation is the U.S. government’s latest move to understand the cryptocurrency mining industry. After China banned the practice in 2021, the country became the world’s largest hub for miners looking to relocate their operations.
Lawmakers grilled the mining industry during a 2022 Congressional hearing over concerns about energy use and fossil fuel emissions. In early 2023, Congress asked the Environmental Protection Agency (EPA) to study the effects of cryptocurrency mining.
Last year, US President Joe Biden also announced a proposal to introduce a 30% incremental tax on the electricity bills of cryptocurrency miners to “reduce mining activity” in the country.
Related: Bitcoin water consumption: a new environmental threat?
Last year, Bitcoin miners consumed an estimated 121.13 terawatt-hours of electricity worldwide, according to the University of Cambridge’s Bitcoin Energy Consumption. This is an all-time high based on data dating back to 2010. index.
In comparison, in 2022 data According to the International Energy Agency (IEA), the European country Belgium consumed 93.8 terawatt hours.
That consumption is expected to increase, with the IEA predicting in a January 25 report that crypto mining will use 160 terawatt-hours by 2026.
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