The U.S. Energy Information Administration (EIA) plans to collect data on the energy use of cryptocurrency miners operating in the United States.
In a press release, the agency announced that it would begin a “preliminary investigation of electricity consumption information from certain virtual currency mining companies operating in the United States.”
Crypto mining is a way for assets that use a proof-of-work consensus mechanism, such as Bitcoin, Dogecoin, and Monero, to verify transactions and unlock new coins. Ethereum previously used proof-of-work consensus, but switched to proof-of-stake in September 2022, which no longer requires miners.
The survey, which begins next week, will require identified commercial cryptocurrency miners to provide details of their energy use. The EIA will also seek public comment on the collection of cryptocurrency miners’ energy usage data.
The study is the result of an “urgent data request” by the Office of Management and Budget (OMB), part of the Office of the President of the United States.
“We will continue to analyze and write about the energy impacts of crypto mining activities in the United States,” EIA Director Joe DeCarolis said in a statement, adding that the EIA will “continue to evolve” for crypto mining. It added that it would focus on energy demand. Growing geographical regions and power sources used for cryptocurrency mining.
in TweetEIA said it carried out the study to “better understand” the energy needs of miners.
Cryptocurrency mining and energy consumption
miningcryptocurrencies such as and The Bitcoin network’s estimated power consumption exceeds that of many countries, and it has historically been criticized for its energy use.
In 2023, environmental campaign group Greenpeace urges Bitcoin developers and miners to abandon its proof-of-work consensus mechanism in favor of a proof-of-stake model that uses less energy. The campaign has started.
Proponents of crypto mining argue that Bitcoin mining can tap into “surplus” green energy and natural gas that would otherwise be disposed of, helping decarbonize the energy grid and accelerate the transition to renewable energy. He is pushing back against his critics.
In September 2023, the University of Cambridge implemented a major update to the university.The Electric Power Consumption Index (CBECI) is one of the important references for energy consumption in Bitcoin mining and concludes that previous calculations were overestimates.
Edited by Stacey Elliott.