US government requires energy reporting from cryptocurrency companies

The Biden administration mandates energy use reporting for cryptocurrency producers, addressing concerns about their impact on electricity grids and climate change.

Kristoffer Tigue reports for Inside Climate News.

In short:

• Cryptocurrency mining's high energy consumption is raising concerns about its effects on the U.S. power grid and climate change.
• The Energy Information Administration is collecting data from more than 130 U.S. cryptocurrency miners to understand the industry's evolving energy demands.
• The growing popularity of cryptocurrencies like Bitcoin has led to increased electricity usage, comparable to the entire energy consumption of Australia.

Key quote:

"Nearly all hours of the year, power demand from bitcoin mines pushes up the real-time cost of electricity in Texas."

— Ben Hertz-Shargel, grid electrification researcher.

Why this matters:

The energy-intensive nature of cryptocurrency mining not only strains the power grid but also contributes significantly to carbon emissions, highlighting an intersection between technology and environmental sustainability.

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