The U.S. Department of Energy is launching an emergency study via the EIA to explore cryptocurrency mining’s energy impact. Aimed at assessing the power use of U.S. bitcoin mining, this study responds to rising concerns about the industry’s electricity consumption. With the U.S. now a major crypto mining hub, understanding and mitigating its environmental effects becomes crucial.
The United States Department of Energy, through the Energy Information Administration (EIA), has taken a proactive step to better understand the implications of cryptocurrency mining on energy usage in the country by announcing plans for an emergency study. This study aims to collect data regarding the electricity use of bitcoin mining enterprises situated in the United States. The Office of Management and Budget (OMB) approved this project, called “Cryptocurrency Mining Facilities,” on January 26, 2024, in response to a prompt request for information.
Analyzing Crypto Mining’s Impact on US Energy Consumption
Observations of a notable increase in electricity usage linked to cryptocurrency mining operations led to the implementation of this policy. The International Energy Agency (IEA) stated in a report from 2022 that this industry generated 0.4% of the world’s total electricity consumption, with estimates that would rise steadily to 130 TWh in 2023. Experts expect this quantity to climb further, reaching 160 TWh by 2026, emphasizing the need to comprehend and control the environmental effects of cryptocurrency mining.
After China banned such operations in 2021, the United States emerged as the world’s largest center for cryptocurrency mining. However, the country is currently under investigation.
Under Administrator Joe DeCarolis’ direction, the EIA reports that the primary goals of this survey are to quantify the amount of energy consumed currently, as well as to comprehend the dynamics of regional growth and the sources of electricity utilized in mining operations. The possible consequences associated with this spike in energy consumption give good reason for concern.
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