US Department of Energy Demands Crypto Miners to Report Their Six-Month Energy Consumption
Summary:
The US Department of Energy (DOE) has asked cryptocurrency miners to disclose their energy consumption over the next six months due to fears that a recent surge in Bitcoin’s value might drive a wave of crypto mining. A provisional survey to measure local firms' electricity usage, approved by the Office of Management and Budget, has been initiated by DOE's statistic arm, the US Energy Information Administration. This effort is part of the government's attempt to monitor energy demand, regional growth, and power sources in the crypto mining sector. The move follows a Congressional hearing over concerns about carbon emissions and energy consumption of the industry, and a proposal from President Biden to impose a 30% incremental tax on crypto miners' electricity costs.
The U.S. Department of Energy (DOE) has called for crypto miners to disclose their energy use over the coming half-year, amidst fears that a recent surge in Bitcoin’s price could prompt a wave of crypto mining. The DOE’s statistical branch, the U.S. Energy Information Administration (EIA), unveiled plans on January 31 to temporarily survey power consumption of domestic crypto mining firms from next week. Crypto miners will have to provide information concerning their energy consumption.
The Office of Management and Budget approved the proposed survey on January 26, responding to an urgent EIA request following a roughly 50% increase in Bitcoin's price over the past three months, which they believe would stimulate further crypto mining and result in higher electricity use. Bitcoin's price rose by slightly more than 18.5% in the three months leading up to January 24, as stated by Cointelegraph Markets Pro. The public will also have a chance to offer their views on the energy usage of crypto miners.
EIA’s head Joe DeCarolis stated the survey would expressly explore the progression of energy demand for cryptocurrency mining, locate regions with significant growth, and calculate the electricity sources used for crypto mining. This survey presents the latest effort by the U.S. government to monitor the crypto mining sector. After China's 2021 ban on crypto mining, the U.S. turned into the leading destination for miners looking to shift their operations.
In 2022, a Congressional hearing examined the mining industry amid apprehension over energy consumption and carbon emissions from fossil fuels. Early the following year, Congress directed the Environmental Protection Agency (EPA) to study the effects of crypto mining. Last year, U.S. President Joe Biden proposed a 30% incremental tax on the power costs of crypto miners to curtail mining activities in the nation.
As per the Bitcoin Electricity Consumption Index of Cambridge University, global Bitcoin miners consumed an estimated record high of 121.13 terawatt-hours in electricity last year, tracing data back to 2010. In contrast, Belgium's 2022 electricity consumption was 93.8 terawatt-hours, as indicated by the International Energy Agency (IEA). This usage rate is expected to rise further, with an IEA January 25 report predicting crypto mining will consume 160 terawatt-hours by 2026.
Published At
2/1/2024 6:42:57 AM
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