EIA investigation sparks U.S. cryptocurrency miner debate over mandatory energy reporting
Posted: February 6, 2024 9:11 AM Updated: February 6, 2024 9:11 AM
Correction and fact check date: February 6, 2024, 9:11 AM
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US cryptocurrency mining companies have criticized the US DOE’s recent mandate to report energy consumption.
U.S. cryptocurrency mining companies have recently expressed criticism of the U.S. Department of Energy’s (DOE) energy consumption reporting requirements. The Energy Information Administration (EIA) has announced an urgent survey of the power consumption of commercial cryptocurrency miners that is expected to serve as a “baseline snapshot” of energy consumption within the domestic cryptocurrency mining industry.
Jason Les, CEO of Bitcoin mining and digital infrastructure company Riot Platforms, deemed the investigation “unlawful” because it does not serve the public interest but is consistent with a political agenda targeting Bitcoin miners and energy suppliers. He said it would be possible.
Brian Morgenstern, head of public policy at Riot Platforms, expressed concern that “government action could potentially put pressure on energy partners to stop working with mining companies.” He further emphasized that the industry must unite against regulatory overreach.
Meanwhile, Alex Brammer, executive director of the Bitcoin Today Coalition, a non-profit organization dedicated to improving the use of Bitcoin within U.S. legislative and regulatory bodies, said the survey was “tremendously disturbing.” “Legal action is needed,” he said. This is due to an attempt to punish unresponsive Bitcoin miners.
EIA Survey Seeks to Reveal the Electricity Impact of the Cryptocurrency Mining Sector
This survey aims to understand how power demands for cryptocurrency mining are changing. It also aims to identify areas where mining growth is concentrated and identify the power sources used by these operations. In a recent analysis, the EIA sought to justify the need for the investigation by highlighting that U.S. miners may have accounted for up to 2.3% of total U.S. electricity demand last year.
Digital coin miners have faced scrutiny in recent years due to their power-intensive operations and the resulting impact on the power grid and carbon emissions. Bitcoin mining has sparked controversy, especially in anticipation of the halving event, a programmatic reduction in the “Bitcoin subsidy” paid to miners that occurs every four years. However, it is difficult to predict whether the next few years will contribute to the growth or contraction of the cryptocurrency carbon footprint.
KPMG recently released a report stating that the Bitcoin network could potentially play a role in helping “balance” the power grid, support renewable energy development, and foster a green economy.
As cryptocurrency mining companies voice concerns and regulatory debate intensifies, the future landscape of energy consumption within the sector remains uncertain.
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Alisa is a reporter for Metaverse Post. She focuses on everything related to investing, AI, metaverse, and Web3. Alisa holds a degree in Art Business and her expertise lies in the fields of art and technology. She developed a passion for journalism through her work with VCs, notable cryptocurrency projects, and science writing. You can contact us at (email protected).
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alice davidson
Alisa is a reporter for Metaverse Post. She focuses on everything related to investing, AI, metaverse, and Web3. Alisa holds a degree in Art Business and her expertise lies in the fields of art and technology. She developed a passion for journalism through her work with VCs, notable cryptocurrency projects, and science writing. You can contact us at (email protected).
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