U.S. Department of Energy Eyes Crypto Miners' Power Use

U.S. Department of Energy Eyes Crypto Miners’ Power Use

Feb. 02, 2024. 2 mins. read.

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Amid the skyrocketing prices of Bitcoin, the U.S. Department of Energy (DOE) is gearing up to launch a comprehensive survey aimed at shedding light on the energy consumption patterns of cryptocurrency mining operations across the nation. This initiative, steered by the department’s statistical wing, the Energy Information Administration (EIA), seeks to decode the cryptic energy demands of this burgeoning industry, particularly as crypto mining activities intensify in response to the currency’s recent value surge.

Pinpointing Power Patterns in Crypto Mining

Starting next week, the EIA will roll out a preliminary six-month survey, compelling local crypto miners to disclose their energy usage. This endeavor, greenlit by the Office of Management and Budget under an emergency directive, is keen on capturing intricate details pertaining to the power consumption of domestic crypto mining hubs. EIA Administrator Joe DeCarolis underlined the survey’s pivotal objectives: mapping the evolving energy demands of cryptocurrency mining, pinpointing high-growth geographic hotspots, and quantifying the electricity sources fueling this digital gold rush.

Tackling Environmental and Energy Challenges

This proactive move by the U.S. DOE is rooted in a growing unease over the energy-intensive nature of crypto mining. The U.S., having emerged as a prime sanctuary for miners post-China’s crackdown, is now grappling with the environmental and energy ramifications of this shift. Spiraling energy usage by crypto miners, coupled with concerns over fossil fuel emissions, prompted U.S. lawmakers to scrutinize the industry in 2022, followed by a call for an Environmental Protection Agency probe in early 2023.

Addressing these pressing issues, President Joe Biden put forth a proposal in 2023 to impose a 30% incremental tax on the electricity expenses of crypto miners, aiming to curb the industry’s energy appetite. This proposition aligns with staggering statistics, such as Bitcoin’s global electricity consumption hitting a record 121.13 terawatt-hours in 2023 – overshadowing the energy needs of countries like Belgium.

Inviting Public Discourse on Crypto’s Energy Footprint

In a bid to foster a holistic understanding of the crypto mining sector’s energy profile, the U.S. government is not just stopping at data collection from miners. It’s also opening the floor for public discourse, encouraging citizens to voice their observations and apprehensions about the industry’s power consumption patterns. This inclusive approach underscores the government’s commitment to engaging all stakeholders in navigating the complex energy landscape of cryptocurrency mining.

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SOURCE: U.S. department of energy initiates survey on crypto miners’ energy consumption (cryptopolitan.com)