Government to Launch New Survey to Determine Energy Consumption of Cryptocurrency Mining Industry

The U.S. government is gearing up to tackle the energy consumption of the fast-growing cryptocurrency industry, with plans to release a new survey that will require disclosure from companies in the cryptocurrency mining sector. The survey aims to provide more accurate data on how much electricity is being used by Bitcoin and other digital asset miners.

The move comes after an emergency survey earlier this year was blocked by a federal judge in Texas following a lawsuit from Bitcoin company Riot Platforms and the Texas Blockchain Council. The new survey will go through a standard public comment period before final approval, ensuring compliance with the Paperwork Reduction Act of 1980.

Bitcoin mining, which involves using powerful computers to solve complex algorithms and validate transactions, consumes a significant amount of energy. In Texas, where a large number of Bitcoin mines are located, concerns have been raised about the impact on the energy grid and the environment.

Critics of the industry argue that transparency is essential to ensure the grid remains reliable as the U.S. transitions to decarbonized energy systems. Calls for transparency are also coming from communities near Bitcoin mining facilities, who are worried about noise pollution and increased electricity rates.

While some Bitcoin mining advocates have suggested that the survey should cover all data centers, not just cryptocurrency mines, others believe that focusing on cryptocurrency mining specifically is necessary to understand the industry’s energy consumption. Researchers are also working to gather energy data from cryptocurrency miners to inform more efficient operation of data centers.

Overall, the push for transparency in the cryptocurrency mining industry reflects a growing awareness of the environmental and grid reliability challenges posed by the sector. As the government and researchers work to gather more accurate data, the industry may need to adapt to ensure its operations are sustainable in the long term.