The US Energy Information Administration to Survey Crypto Mining Companies on Electricity Consumption
The Energy Information Administration (EIA) will begin surveying crypto mining companies in the US on their electricity consumption starting next week. The Office of Management and Budget has authorized the survey for the next six months. The EIA plans to analyze and report on the energy implications of cryptocurrency mining activities in the country, including geographic areas of high growth and sources of electricity used. The survey is estimated to cost the federal government $193,152 annually.
Bitcoin’s Price Increase Cited as Reason for Emergency Request
The EIA justified its emergency request for data by citing bitcoin’s recent price increase as evidence. The agency believes that higher prices incentivize more crypto mining activity, which leads to increased electricity consumption. It also expressed concerns about the combination of increased mining and stressed electricity systems during a cold snap, creating uncertainty in power markets that could affect operations and consumer prices. However, some experts disagree with this assessment, arguing that bitcoin stabilizes power grids through demand-response.
Bitcoin Hashrate Fell Amid Grid Curtailment Requests
In Texas, where many bitcoin miners operate, the network hashrate fell by an estimated 25% due to curtailment requests from the grid regulator during a cold snap. Marathon, one of the affected miners, curtailed operations to support the grid and citizens during the outbreak.
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