In response to worries that the recent surge in Bitcoin’s price, causing a flurry of crypto mining activities, the United States Department of Energy (DOE) is requiring cryptocurrency miners to disclose their energy usage for the upcoming six months. The current Bitcoin value is at $42,110.
On January 31, the U.S. Energy Information Administration (EIA), the Department of Energy’s statistics agency, announced the commencement of a provisional survey to assess the electricity consumption of local cryptocurrency mining companies starting next week. Miners are mandated to provide details regarding their energy use in response to the survey. The Office of Management and Budget approved the survey on January 26 following an emergency request from the EIA. The request stated that the approximately 50% surge in Bitcoin’s price over the last three months would likely stimulate more crypto mining activity, thereby escalating electricity consumption.
Public comments on the energy usage of crypto miners will also be gathered.
We're initiating collection of data regarding #electricity use by US #cryptocurrency miners.
— EIA (@EIAgov) January 31, 2024
We'll ask about their electricity consumption so we can better understand their energy demands.
👉https://t.co/gYpZgtiD6J pic.twitter.com/pQ9ULoLAAU
EIA Administrator Joe DeCarolis emphasized that the survey would specifically concentrate on understanding how the energy demand for cryptocurrency mining is evolving. It aims to identify geographic areas experiencing high growth and quantify the sources of electricity meeting the demand for cryptocurrency mining.
This survey is the latest effort by the U.S. government to gain insight into the crypto mining industry. The U.S. became the world’s largest hub for miners relocating operations after China banned the practice in 2021.
Lawmakers examined the mining industry in a 2022 Congressional hearing, expressing concerns about energy use and fossil fuel emissions. In early 2023, Congress urged the Environmental Protection Agency (EPA) to investigate the impact of crypto mining.
U.S. President Joe Biden proposed a 30% incremental tax on crypto miners’ electricity costs last year to “reduce mining activity” in the country.
In 2021, Bitcoin miners globally consumed an estimated 121.13 terawatt-hours of electricity, an all-time high since 2010, according to Cambridge University’s Bitcoin Electricity Consumption Index. Comparatively, 2022 data from the International Energy Agency (IEA) shows that Belgium consumed 93.8 terawatt-hours.
This consumption is projected to rise, with the IEA forecasting, in a January 25 report, that crypto mining will use 160 terawatt-hours by 2026.
