The Biden administration has Announced that large cryptocurrency mining operations must report their electricity consumption.
in a Press release According to the Energy Information Administration (EIA), the requirement was made after the potential threat of huge electricity consumption to the country's power grids and environment.
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EIA establishes qualification for required consumption report
The EIA has classified 137 โidentified commercial cryptocurrency minersโ in the US. According to the data, these mining operations are responsible for around 2.3% of national energy use or 90 terawatt-hours annually.
In a global environment, crypto miners around the world have consumed the same electricity consumption as the entire country of Australia in 2023. In response to this, the EIA will collect data through a survey.
โWe will focus specifically on how energy demand for cryptocurrency mining is evolving, identify high-growth geographic areas, and quantify the sources of electricity used to meet cryptocurrency mining demand,โ said EIA Administrator Joe DeCarolis.
The survey will be used to analyze and investigate the energy implications of the growing cryptocurrency mining industry in the country.
Cryptocurrency mining poses a risk to the US power supply
The EIA revealed that around 38% of all bitcoins are mined in the US, which increased by 3.4% compared to 2020 data. However, as the industry grew, concerns arose about its implications for the country.
"As cryptocurrency mining has increased in the United States, concerns have grown about the energy-intensive nature of the business and its effects on the U.S. electrical industry," the EIA said in a statement. report.
If left unregulated, the EIA explained it could overload the power grid, especially during peak periods. This will eventually increase energy prices for average consumers.
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