The U.S. Energy Information Administration (EIA) collects data on the energy use of cryptocurrency miners operating in the United States.
In a press release, the agency announced that it would begin “an interim investigation into electricity consumption information from cryptocurrency mining companies identified as operating in the United States.”
Cryptocurrency mining is a way for assets such as Bitcoin, Dogecoin, and Monero to verify transactions and unlock new coins using a proof-of-work consensus mechanism. Ethereum used to have a proof-of-work consensus, but will switch to proof-of-stake in September 2022, meaning miners will no longer be needed.
The survey, which will begin next week, will require identified commercial cryptocurrency miners to respond with details about their energy use. EIA will also seek public input on the collection of energy usage data from cryptocurrency miners.
This investigation is in response to an ‘emergency data collection request’ from the Office of Management and Budget (OMB) under the U.S. Presidential Administration.
“We plan to continue to analyze and write about the energy impacts of cryptocurrency mining activities in the United States,” EIA Administrator Joe DeCarolis said in a statement. “We will focus on change,” he said. Growing areas and electricity sources used for cryptocurrency mining.
in TwitterThe EIA said it was conducting a survey to “better understand” miners’ energy needs.
Cryptocurrency mining and energy consumption
mining proof of work Cryptocurrency such as bitcoin and Dogecoin Historically, the Bitcoin network has been criticized for its energy use, with its projected power consumption exceeding that of many countries.
In 2023, environmental campaign group Greenpeace launched a campaign urging Bitcoin developers and miners to abandon the proof-of-work consensus mechanism in favor of the less energy-consuming proof-of-stake model.
Cryptocurrency mining advocates say Bitcoin mining could use “excess” green energy and natural gas that would otherwise go to waste, and could help decarbonize the energy grid and accelerate the transition to renewable energy, while criticizing critics counterattacked.
In September 2023, the University of Cambridge will bitcoin The Electricity Consumption Index (CBECI), one of the main references on the energy consumption of Bitcoin mining, concluded that previous calculations were overestimated.
Edited by Stacey Elliott.