The US Government May Soon Ban Bitcoin Mining

Currently, the DOE is investigating bitcoin (BTC) mining. Is this worrying. The DOE's Energy Information Administration (EIA) will survey selected U.S. miners' energy consumption for six months starting next week after issuing a “emergency collection of data request.”

Many fear that the information obtained would be utilized to hurt the mining business due to the “emergency” order and the current administration's crypto-critical posture. The EIA warns of “public harm” from crypto mining for data collection in its public filing.

Policy neutral EIA does not establish, administer, enforce, or comment on policy. In emails, EIA spokeswoman Morgan Butterfield told CoinDesk. “Data will inform our path forward regarding a regular three-year clearance during the next six months.”

Despite being policy-neutral, the poll may impact policy. By conducting this poll, the EIA appears to be inquiring about Bitcoin's greater purpose and if it serves society, and may already have an answer.

The Office of Management and Budget justified the emergency order by citing the recent crypto price rally, which saw bitcoin rise over 50% in months and “incentivize more cryptomining activity, which in turn increases electricity consumption.”

Given the emerging and rapidly changing nature of this issue and because we cannot quantitatively assess the likelihood of public harm, EIA feels acute urgency to generate credible data that would provide insight into this unfolding issue,” it stated. Butterfield said 82 organizations with 150 facilities were chosen to represent the "universe of cryptocurrency companies" nationwide.

The authorities used a 2018 Plattsburg cold spell to demonstrate crypto's vulnerabilities. It said that growing cryptomining and pressured electrical networks raise unpredictability in electric power markets, which might cause demand peaks that influence system operations and consumer costs.

Since then, New York State has banned new crypto mining operations without sustainable energy for two years. Texas, which benefited from China's crypto mining prohibition, has also tried to stifle the business. Texas crypto miners are compensated to power down during high demand and network stress by the state-owned grid operator.

Keep an eye out for more updates!