The Biden administration recently announced in a press release that it will require large cryptocurrency mining operations to report electricity usage. Energy Information Administration. It comes amid concerns that the industry could threaten the nation’s power grids and accelerate the effects of climate change.
To that end, the EIA targeted 137 “designated commercial cryptocurrency miners” operating in the United States. These operations account for about 2.3 percent of national energy use. It is so fragmented 90 terawatt-hours per yearwhich is More than Finland, Belgium and Chile use at the same time. The world’s cryptocurrency miners used as much electricity as the entire country of Australia in 2023. There’s a lot of energy for that Shiba Inu branded internet money without practical application.
Data collection began this week. The purpose of the survey is to understand the growing demands of the industry and which parts of the country are the biggest cryptocurrency hotbeds, thus further refining the policy. The EIA found that nearly 38 percent of all bitcoin is now mined in the United States, up from 3.4 percent in 2020.
“As cryptocurrency mining grows in the U.S., concerns have grown about the energy-intensive nature of the business and its impact on the U.S. electricity industry,” EIA the report says This gave more details behind the survey.
The EIA further noted that large cryptocurrency transactions could stress the power grid during peak periods, raise energy prices for average consumers, and negatively impact energy-related carbon dioxide emissions. Most of the electricity produced worldwide comes from burning fossil fuels, a process that releases carbon dioxide into the atmosphere.
Clean energy advocacy group RMI estimates that the US is mining cryptocurrencies It emits 25-50 million tons of CO2 enters the atmosphere every year. This is roughly the same amount as the annual diesel emissions of the US railroad industry.
The largest mining operations in the country are scattered across 21 states, but are concentrated mainly in Texas, Georgia and New York. This is especially dangerous for Texans, as is the state’s power grid already famous for its fragility. Ben Hertz-Shargel heads the energy research consultancy Wood Mackenzie. he said Ars Technica cryptocurrency mining operations not only place a higher burden on the state’s power grid, but also increase prices for consumers.
Energy costs in Texas are based on real-time demand, so Hertz-Shargel estimates that state residents are seeing a 4.7 percent increase in their monthly utility bills due to cryptocurrency generation. He also said mining operations tend to set up shop next to pre-existing renewable energy facilities, driving clean energy away from nearby homes and businesses.
All is not doom and gloom in the cryptocurrency world. Ethereum in 2022 announced a software update making mineral ether more environmentally friendly. The Ethereum Foundation claims that this reduces the carbon emissions of mining operations by more than 99 percent. However, ether only accounts for 17 percent share of the global cryptocurrency market.
