Crypto Is Straining the Power Grid. Congress Wants to Rein It In

All of the companies included in the investigation were asked to explain the impacts of their facilities on energy costs to local families and businesses, but no models or estimates were available to track those impacts. The people who asked the question said they didn't expect to have a noticeable effect on the cost of consumer energy bills. Bit Digital said it would be counterintuitive to study its own impact on local families and businesses because it is located in a rural area with excess power supply and limited demand.

Tabar criticized the letter from Warren, et al. for being silent on the data that shows how the firm stokes job creation in dilapidated economies while using unwanted power infrastructure. Tabar says that Bit Digital is happy to help shape the industry by being leaders in using sustainable sources of power, and that the firm was hoping the senator would see their efforts there.

It's hard to forecast how local residents and businesses will be affected by projected growth of these firms. Data can't be used to predict how US citizens will be impacted because of commitments by firms to shift to renewable energy sources. According to Stronghold Digital Mining, it's difficult to attribute any change in local electricity costs tocryptocurrencies. Stronghold did not reply to the request for comment.

Requiring reporting is the answer according to congress members. They're worried about residents and businesses in states like Texas, which have relatively cheap electricity costs, which could cause stress on the power grid.

There is a future of cryptocurrencies in the United States.

The total reductions in greenhouse gas emissions attributed to electric vehicles were wiped out by the four-fold increase in global power consumption from bitcoin mining.

The biggest firms are motivated to switch to renewable energy sources because they want to spend less money on power. Firms claimed that it could help the US achieve its renewable energy goals if the US supported the expansion ofcryptocurrencies rather than banning them as China and India have done.

When there's a spike in energy demand on the grid, firms help to stabilizing energy supply and decrease consumer costs. Bit Digital suggested that lawmakers consider rewarding miners who participate in these programs. The hunger for growth and incentives is boundless.

Helping officials understand how digital currency works will be an important part of the country's energy use equation. By the end of the summer, congress members expect the EPA and DOE to give an update on how they plan to report on cryptocurrencies. If the agency response is timely, that update should arrive ahead of President Joe Biden's request for a September report that will explain the energy policy implications if the US adopts a central bank digital currency.

The story was first published on Ars Technica.