The power consumption of Bitcoin Mining is once again being scrutinized by US regulators. In response, the Biden administration has issued an “emergency collection of data request” to gather information on the electricity usage of Bitcoin miners. This has sparked controversy among crypto enthusiasts, who see it as a conflict between Bitcoin and the US currency.
The Energy Information Administration (EIA) will begin collecting data this week, following the approval of an emergency investigation by the Office of Management and Budget. This request will require individuals involved in Bitcoin mining, including those who use powerful computers to verify transactions and maintain the blockchain, to provide information on their energy consumption.
Many supporters of Bitcoin are becoming increasingly convinced that the US dollar is on the brink of collapse. This belief is fueled by the significant increase in the country’s debt and the devaluation of the currency due to the COVID-19 pandemic. The current scrutiny over Bitcoin mining is raising concerns that the government may impose strict regulations on the cryptocurrency market in the future.
However, there is also speculation that the uncertainty surrounding the US dollar could potentially have a positive impact on Bitcoin. In times of economic turmoil, investors may turn to decentralized assets like cryptocurrencies to protect their wealth from government interference and devaluation.
In an interview, Strike founder and CEO Jack Mallers suggested that the US debt crisis could lead to a collapse of the dollar and a rise in the value of Bitcoin. He believes that in such a scenario, Bitcoin is the only viable alternative as a decentralized physical asset.
With the upcoming election, there are also concerns about how the current administration views cryptocurrency. The data collection on Bitcoin mining’s electricity usage may hint at a preference for the US dollar over digital currencies. This could potentially sway the votes of the 52 million Americans who now own cryptocurrency, with a significant portion identifying as Democrats.
In conclusion, the issue of Bitcoin mining’s power consumption has once again caught the attention of US regulators. While there are concerns and uncertainties surrounding the future of both Bitcoin and the US dollar, it remains to be seen how these factors will play out in the upcoming election and the wider cryptocurrency market.