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.
Elizabeth Sawin: Steps to re-invigorate the economy must free us from polluting fossil fuels.
