- US Senator Cynthia Lummis expressed her support for Bitcoin mining firms amid the pressure posed by the latest EIA survey.
- The politician highlighted the importance of the sector in stabilizing the country’s energy grid and kickstarting the development of more sustainable sources of electricity.
Senator Cynthia Lummis Takes the Side of Bitcoin Mining Firms
A debate ensued in the legislature on Friday as senators were divided between the issue concerning the EIA survey on Bitcoin (BTC) mining firms. In consideration of the injunction filed in the court by the Texas Blockchain Council, the energy department announced a temporary halt on the ongoing probe until a judgment is passed down.
Wyoming Senator Cynthia Lummis was one of the outspoken critics of the government’s recent move, so she commended the EIA’s decision to suspend the proceedings. The American politician believes that such an action could give way to regulatory overreach, which could hamper innovation.
Senator Lummis sided with Bitcoin miners, particularly those that have shown a shift toward sustainable energy sources. Overall, she thinks the sector could bring about a positive impact on US energy grids and pave the way for the development of more self-sufficient and renewable mining solutions in the long run. She likewise urged industry players to explore Bitcoin mining opportunities in her home state.
Energy Use in Bitcoin Mining
Based on the study by the University of Cambridge Judge Business School, Bitcoin mining consumes approximately 176.06 Terawatt hours (TWh) annually. The US has a slice of around 22.5% of the figures while China and Kazakhstan are estimated at 30.2% and 11.3%, respectively.
With the coming Bitcoin halving wherein rewards will be reduced from the current 6.25 BTC to 3.125 BTC, analysts expect Bitcoin miners to upgrade or switch to more sustainable and renewable energy sources to lessen their operational expenses and ensure profits.
Meanwhile, the US is now shifting to renewable energy resources like solar and wind. However, the output of these resources is often put to waste when demand is low.
Bitcoin miners can help rebalance the utilization of energy in the grid by adjusting their operating parameters down when public demand is high or amping up their rigs when overall demand is low. The latter presents a great way to monetize excess energy, and in turn, let the government generate more taxes from the income of BTC mining businesses.