February 28, 2024

Taylor Daily Press

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US Follows EU in Launching War on Bitcoin Mining

US Follows EU in Launching War on Bitcoin Mining

Earlier this week, it was announced that the European Commission (EC) has designated Bitcoin mining as a risk to the climate and the European energy grid. Incidentally, we are now getting a similar message from America. US Department of Energy (DOE) Industry is listening To report on their energy consumption for the next six months.

They are concerned after the recent Bitcoin price spike.

Why do they care?

The U.S. Energy Commission is concerned because they expect this could lead to more parties mining Bitcoin or massive expansion of existing players.

A higher Bitcoin price naturally makes mining more attractive in theory. However, the question remains how attractive it is for new parties to join and start mining before halving.

This is often seen as a period of uncertainty. A period of uncertainty about mining profitability as a reward for producing a block of halves.

In addition, it is strange, because statistics have shown that Bitcoin mining can be a significant plus as a kind of stabilizer for local energy grids.

Bitcoin as a Stabilizer of Energy Grids?

In Texas, USA, Bitcoin continues to be praised for its ability to stabilize the energy grid.

How does it work?

Texas experiences extreme weather conditions in summer and winter. During a blizzard, the demand for energy from the local population is high.

Texan officials have contracts with bitcoin miners during which they turn off their equipment. The energy they use to keep the Texas power grid afloat (and thus pay) can be used during peak times.

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Without those bitcoin miners, this would be very expensive to organize and achieve. Then the local government must channel that energy in another way.

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