Federal Judge In TX Blocks USDOE Efforts To Monitor Electricity Use By Cryptocurrency "Industry"
The US government has suspended its effort to survey cryptocurrency mining operations over their ballooning energy use following a lawsuit from an industry that has been accused by environmental groups of fueling the climate crisis. A federal judge in Texas has granted a temporary order blocking the new requirements that would ascertain the energy use of the crypto miners, stating that the industry had shown it would suffer “irreparable injury” if it was made to comply.
The US Department of Energy had launched an “emergency” initiative last month aimed at surveying the energy use of mining operations, which typically use vast amounts of computing power to solve various mathematical puzzles to add new tokens to an online network known as a blockchain, allowing the mining of currency such as bitcoin. The growth of cryptocurrency, and the associated mining of it, has been blamed for a surge in electricity use as data centers have sprung up across the US, even reviving, in some cases, ailing coal plants to help power the mining.
The federal government has said it needs better information about major miners’ power use, but estimates that up to 2.3% of the US’s total electricity demand last year came from just 137 mining facilities. Globally, crypto miners are thought to soak up as much as 1% of all electricity demand, which is the same as the entire country of Australia, with bitcoin mining’s energy use doubling just last year.
This new thirst for electricity risks worsening the climate crisis, campaigners say. In the US, where nearly four in 10 of all bitcoin are now mined, up to 50m tons of carbon dioxide is released each year due to the mining operations, according to RMI, a clean energy thinktank. The rise of crypto mining has also placed a strain upon certain electricity grids. Last year it emerged that authorities in Texas paid a bitcoin enterprise called Riot more than $31m in energy credits to voluntarily lower its electricity usage during a heatwave that caused a spike in power demand from the public.
EDIT
https://www.theguardian.com/technology/2024/feb/27/crypto-mining-electricity-use