The U.S. Energy Information Administration (EIA) Receives Approval to Survey Energy Usage by Crypto Miners
The Office of Management and Budget (OMB) under President Biden has given approval to the U.S. Energy Information Administration (EIA) to conduct an urgent survey on the electricity consumption of cryptocurrency mining companies in the country. The EIA has stated that there is a potential for public harm if the energy usage of these mining operations continues as usual.
OMB Grants Emergency Authorization for Energy Usage Survey
The OMB has granted the EIA permission to collect data from specific commercial crypto mining firms, requiring them to reveal details about their energy consumption. The survey will commence next week and aims to gather information on the evolving energy demand of cryptocurrency mining, identify areas of high growth, and quantify the sources of electricity being used.
Seeking Public Input on Crypto Mining
The EIA also plans to solicit public feedback on the energy consumption of cryptocurrency miners. The agency’s administrator, Joe DeCarolis, stated that they will continue to study the energy implications of crypto mining activities in the United States.
Concerns over Public Harm
The EIA has emphasized that the potential for public harm is significant if the current energy consumption by crypto miners is not addressed. The agency points to the increasing price of bitcoin, which leads to more mining activity and higher electricity consumption. Additionally, extreme weather conditions, like the current cold snap in the central United States, further strain the electricity systems.
Request Warranted Due to Demand Impact
Glenn McGrath, a spokesperson for the EIA, has justified the data collection request by stating that crypto mining is a significant source of electricity demand. The agency aims to obtain better data to understand the impact of these operations. The urgency of the request is underscored by the potential effects on system operations and consumer prices, as previously witnessed in Plattsburgh, New York.
Hot Take: Concerns over the environmental impact of cryptocurrency mining are gaining attention, as evidenced by the U.S. EIA’s urgent survey. This move reflects the growing need to assess and regulate the energy consumption of crypto miners to prevent potential harm to the public and strain on electricity systems. As the cryptocurrency industry expands, it is essential to address its carbon footprint and mitigate any adverse effects on the environment.
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