Biden administration now requires large cryptocurrency miners to report their energy usage

The Biden administration recently announced via a press release from the Energy Information Administration that it will require large cryptocurrency mining operations to report electricity usage. There were previous concerns that the industry could pose a threat to the national grid and accelerate the effects of climate change.

To this end, the EIA targeted 137 “identified commercial cryptocurrency miners” working in the United States. These businesses account for approximately 2.3% of national energy use. This is equivalent to 90 terawatt hours per year, more than Finland, Belgium and Chile used during the same period. In 2023, global cryptocurrency miners will use as much electricity as the entire country of Australia. For a Shiba Inu-branded online currency, that’s a lot of power, but no practical application.

Data collection began this week. The survey aims to understand the growing demand in the industry and which areas of the country are the largest cryptocurrency hotbeds in order to subsequently refine policies. The EIA has found that nearly 38% of Bitcoin is mined in the United States, up from 3.4% in 2020.

“As the U.S. cryptocurrency mining industry increases, concerns are growing about the energy-intensive nature of the business and its impact on the U.S. power industry,” the EIA said in a report that provides more behind the investigation. detail.

The EIA went on to note that large-scale cryptocurrency mining operations could put pressure on the power grid during peak hours, force higher energy prices for average consumers, and negatively impact energy-related carbon dioxide emissions. Most of the electricity generated around the world comes from burning fossil fuels, a process that releases carbon dioxide into the atmosphere.

Clean energy advocacy group RMI estimates that U.S. cryptocurrency mines emit 25 to 50 million tons of carbon dioxide into the atmosphere each year. That’s about the same as the U.S. rail industry’s annual diesel emissions.

The largest mining operations in the United States are located in 21 states, but are mainly concentrated in Texas, Georgia and New York. This is particularly dangerous for Texans because the state’s energy grid is already so fragile.Ben Hertz-Shargel, principal at energy research consultancy Wood Mackenzie, said technical art Cryptocurrency mining operations not only place a greater burden on national energy grids, but also increase prices for consumers.

Energy costs in Texas are based on immediate demand, so Hertz-Shargel estimates that state residents’ monthly utility bills have increased by 4.7% due to cryptocurrency mining. He also said mining operations tend to set up plants next to existing renewable energy facilities, drawing clean electricity from nearby homes and businesses.

It’s not all doom and gloom in the crypto world. As early as 2022, Ethereum announced a software update to make Ethereum mining more environmentally friendly. The Ethereum Foundation claims this reduces the carbon emissions of its mining operations by more than 99%. However, Ethereum only accounts for 17% of the global cryptocurrency market share.