Bitcoin pump calls for ‘risk’ assessment of US crypto mining energy use

The United States Department of Energy (DOE) is requiring crypto miners to report their energy consumption for the next six months after concerns over the recent rise in the price of Bitcoin (BTC).

On January 31, the US Energy Information Administration (EIA) – the DOE's statistical agency – said that starting next week it is starting an interim study to measure the electricity use of domestic crypto mining companies, saying that miners “should respond in detail.” In relation to their use of force.

The Office of Management and Budget green-lighted the survey on Jan. 26, days before an emergency request from the EIA, saying that Bitcoin's price “has risen approximately 50% in the past three months” and “encourages more cryptomining activity, which will increase electricity consumption.” “

Cointelegraph Markets Pro shows that Bitcoin has increased more than 18.5% in three months to January 24.

Public opinion will also be gathered regarding the use of crypto mining power.

We are starting to collect data on the #electricity usage of #cryptocurrencyminers in the US.

We ask about their electricity consumption so we can better understand their energy needs.

pic.twitter.com/pQ9ULoLAAU

— EIA (@EIAgov) January 31, 2024

“It will specifically focus on how the demand for energy for cryptocurrency mining is growing, identifying geographic areas with high growth and measuring the electricity resources used to meet the demand for cryptocurrency mining,” said IA Administrator Joe DeCarolis.

The survey is the latest move by the US government to regulate the crypto mining industry. China in 2010 After banning the practice in 2021, the country has become the world's biggest hub for miners looking to relocate.

Lawmakers have scrutinized the mining industry in 2022 congressional hearings about concerns about energy use and fuel emissions. In the year As early as 2023, Congress called on the Environmental Protection Agency (EPA) to investigate the impact of crypto mining.

Last year, US President Joe Biden proposed implementing a 30% additional tax on crypto miners' electricity costs to “slow down mining activity” in the country.

Related: Bitcoin's Water Consumption: A New Environmental Threat?

Last year, bitcoin miners consumed an estimated 121.13 terawatt-hours of electricity worldwide — an all-time high since data dating back to 2010, according to the University of Cambridge's Bitcoin Electricity Consumption Index.

On the other hand, According to data from the International Energy Agency, the European country Belgium will consume 93.8 terawatt hours in 2022.

This consumption is expected to increase, with the IEA forecast on January 25 that by 2026, crypto mining will use 160 terawatt-hours.

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