US begins investigation into energy consumption of cryptocurrency miners
The United States, through the Energy Information Administration (EIA), will begin collecting data on the energy consumption rates of domestic cryptocurrency miners starting next week.
On January 31, the EIA announced its intention to launch an interim investigation into commercial cryptocurrency miners. This survey was approved as an emergency data collection request by the Office of Management and Budget (OMB), indicating the urgency of obtaining this information.
In seeking approval, the EIA wrote that rising Bitcoin prices have encouraged more cryptocurrency mining activity, leading to increased electricity consumption.
The EIA asserted that “increased cryptocurrency mining and stress on power systems could lead to increased uncertainty in electricity markets, resulting in demand peaks that impact system operations and consumer prices.”
In addition to the survey, EIA will actively seek public input on its energy use data collection process for the cryptocurrency mining sector.
EIA Administrator Joe DeCarolis emphasized that the investigation aims to uncover the widespread impact of cryptocurrency mining activities in the United States.
DeCarolis also described the EIA’s focus on understanding how energy demands associated with cryptocurrency mining evolve. The agency aims to pinpoint areas showing significant growth in the sector and quantify the power sources that fuel this demand.
Cryptocurrency mining in the United States
Mining activities have attracted significant attention from regulators and lawmakers alike due to the electricity they consume and their impact on the power grid and carbon emissions.
Over the past few years, the United States has emerged as a major mining hub following China’s mining ban in 2021. The United States now has an average monthly hashrate share of over 37%, according to data from the Cambridge Center for Alternative Finance (CCAF). January 2022.
In particular, skeptics point out that the energy use of major cryptocurrencies, which hinders mining activities, has a negative impact on the environment. However, industry experts have suggested that BTC mining activities can actively contribute to the stability and efficiency of the power system.
The news that the U.S. is launching an investigation into the energy consumption of cryptocurrency miners appeared first on CryptoSlate.
