Congressional Democrats are looking into how much electricity energy that crypto-currency companies use. Democrats are particularly concerned about how an overuse of electricity through crypto-currency mining could harm the environment and drive up energy prices.
These members have reached out crypto-currency mining companies to find out their current energy consumption numbers and if they plan to expand. Some crypto-currency mining companies are even purchasing old power plants. Some of these kinds of power plants are notorious for having energy waste. Several environmental advocates worry that more Bitcoin mining could be particularly harmful to the environment.
Additionally, extensive crypto-currency mining has led to local energy prices to balloon wherever the mining is occurring. Often mining companies will compete with each other in terms of activity, which causes energy rates to endlessly go up.
For now, several of the mining companies are claiming to be receptive and pledge to cooperate with the inquiry.
Meanwhile, Republicans and Democrats from coal states are warming up to crypto mining. Given the decline of coal use and the harm that this decline has done to states that once had booming coal industries, any activity that uses a large amount of coal can help these states.
Given coal country’s Conservative bent, largely Republicans are defending cryptocurrency, but Kentucky Democrat Governor Andy Beshear did enact legislation that allowed crypto currency mining to qualify for an alternative energy tax credit. Nonetheless, in Washington DC, it is virtually only Republicans supporting the mining industry.
Coal state Republicans are particularly attacking regulations of cryptocurrency mining as government overreach. This kind of argument sets up an inevitable clash with the Democrats who have expressed concern over cryptocurrency mining.