The U.S. Department of Energy (DOE) has decided to conduct an investigation into Bitcoin (BTC) mining activities. The Energy Information Administration (EIA) issued an emergency data collection request to investigate electricity usage by Bitcoin mining companies. It was stated that the purpose of the investigation was to assess the potential for public harm caused by cryptocurrency mining, but concerns were also raised about this. While the U.S. Office of Management and Budget has approved this emergency order citing increased electricity consumption due to Bitcoin mining, it is said to be conducting an investigation into the coin's ultimate purpose and social benefits with the goal of obtaining accurate information on mining activities. .

EIA explained that the survey will focus on how the energy demand for Bitcoin mining is changing, identifying high-growth areas, and quantifying the sources of electricity used to meet mining demand. Meanwhile, organizations including Harvard University and KPMG have published a report arguing that Bitcoin could help 'balance' the power grid, subsidize renewable energy development and make the economy greener. In response, the University of Cambridge is said to have recently revised downward its estimate of Bitcoin's annual energy use.

Although this practice claims to be a 'policy-neutral body', it has been argued that there is no guarantee that the surveys conducted will not influence policy. Considering the US government's critical stance on cryptocurrency (virtual assets), there appears to be concern that the collected information may have a negative impact on the mining industry. There is an expectation that this can provide meaningful statistical data to the cryptocurrency market, but it is also possible to increase uncertainty in the power market due to the stress of the power system due to cryptocurrency mining, which may affect system operation and consumer prices. There is a bar.

Lastly, it is noted that this investigation was conducted against the backdrop of the Biden administration prioritizing reducing the country's carbon footprint and strengthening oversight of the environmental impacts of cryptocurrency mining. With Senator Warren mentioned, there is room for evaluation as an investigation to find new perspectives on mining activities and their environmental sustainability.

Discussions about the energy demand, environmental impact, and political background of cryptocurrency mining that emerge during this process emphasize the need to evaluate and improve the social and economic impact of this industry in the future. In other words, it is emphasized that the negative and differentiated perspectives on mining need to be addressed together.
Daniel Kuhn is a feature reporter and CoinDesk Layer 2 commentary editor. He is an experienced journalist who reports news in an independent newsletter and writes a column twice a week. It currently owns Bitcoin and Ethereum and is famous for its in-depth analysis and reports.