White House Alarmed by Bitcoin Mining’s Impact on Power Grid Amid Price Surge

In a recent development, the White House has raised apprehensions about the impact of Bitcoin mining on the power grid, citing significant strain caused by the surge in Bitcoin prices earlier this week. Fox Business’ Charles Gasparino reported on the administration’s concerns, echoing previous sentiments expressed in the proposed Digital Asset Mining Energy (DAME) excise tax introduced in May 2023. The tax aimed to address both the “economic and environmental cost” associated with crypto mining.

As Bitcoin soared to $57,000, marking its highest level since 2021, the U.S. government reportedly voiced its worries about the strain placed on the power grid due to increased mining activities. Gasparino highlighted the administration’s concerns, attributing them to the rising demand for Bitcoin outpacing its supply. Crypto industry officials, however, dismissed these worries as “overblown,” anticipating potential attempts to leverage the concerns to push for increased regulatory measures in the sector.

This apprehension from the White House regarding the energy impact of crypto mining aligns with the earlier introduction of the DAME tax, aimed at making crypto miners bear the costs they allegedly impose on others. Despite efforts by experts to downplay these concerns, the White House seems resolute in addressing the perceived environmental and economic implications of cryptocurrency mining.