The U.S. Energy Information Administration (EIA) to Collect Data on Energy Use of Cryptocurrency Miners
The U.S. Energy Information Administration (EIA) has announced that it will gather data on the energy consumption of cryptocurrency miners operating in the United States. This move comes as the agency plans to launch a provisional survey to collect electricity consumption information from identified commercial crypto mining companies.
Crypto mining involves verifying transactions and unlocking new coins for assets that use a proof-of-work consensus mechanism, such as Bitcoin, Dogecoin, and Monero. However, Ethereum has transitioned to a proof-of-stake consensus and no longer requires miners.
The survey, set to begin next week, will require identified commercial crypto miners to provide details about their energy use. Additionally, the EIA will seek public input on collecting energy use data from crypto miners.
This survey follows an emergency collection of data request by the Office of Management and Budget (OMB), which is part of the Executive Office of the President of the United States.
EIA Administrator Joe DeCarolis stated that they intend to analyze and report on the energy implications of cryptocurrency mining activities in the United States. The agency will focus on understanding the evolving energy demand for crypto mining, identifying areas of growth, and determining the sources of electricity used for mining.
The EIA shared on Twitter that they are conducting this survey in order to gain a better understanding of miners’ energy demands.
Crypto Mining and Energy Consumption
The mining of proof-of-work cryptocurrencies like Bitcoin and Dogecoin has faced criticism for its high energy usage. The power consumption of the Bitcoin network alone has exceeded that of many countries.
In 2023, Greenpeace launched a campaign urging Bitcoin developers and miners to switch from proof-of-work to the less energy-intensive proof-of-stake model.
However, crypto mining advocates argue that Bitcoin mining can utilize excess green energy and natural gas that would otherwise go to waste. They claim that it can help decarbonize energy grids and accelerate the adoption of renewable energy sources.
In September 2023, the University of Cambridge updated its Bitcoin Electricity Consumption Index (CBECI), which provides estimates on Bitcoin mining’s energy consumption. The update concluded that previous calculations had overestimated the energy usage.
Hot Take: U.S. Energy Information Administration Collects Data on Energy Use of Cryptocurrency Miners
The U.S. Energy Information Administration (EIA) has taken a step towards understanding the energy consumption of cryptocurrency miners in the United States. By launching a survey to collect data from commercial crypto miners, the EIA aims to gain insights into the evolving energy demand for mining operations and identify areas of growth. This move comes amidst ongoing debates about the environmental impact of crypto mining, particularly for proof-of-work cryptocurrencies like Bitcoin. While critics argue that it consumes excessive amounts of energy, proponents highlight its potential to utilize renewable sources and contribute to decarbonizing energy grids. With this data collection initiative, the EIA aims to shed light on the energy implications of crypto mining activities in the country.
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