Cryptocurrency

Elizabeth Warren-led US lawmakers demand probe of ERCOT’s support for Bitcoin miners in Texas

A group of U.S. lawmakers, led by Senator Elizabeth Warren, Asked The Texas Electricity Reliability Council (ERCOT) provides operational and financial information about Bitcoin miners in Texas.

Texas has about 30 cryptocurrency mining companies, consuming about 9% of the world’s mining power. By the end of 2023, the emission rate is expected to soar to 20% of his.

by letter handle To ERCOT CEO Pablo Vegas, lawmakers say that “cheap labor and laissez-faire regulations” have led to an influx of cryptocurrency miners into Texas, making the state a “deregulated safe harbor.” claimed to be

Legislators argued that ERCOT’s policy support for miners has increased the demand for grid electricity, impacting electricity bills for residents.

Lawmakers said:

“Given the impact cryptocurrency mining has on climate, power grids and toll payers, ERCOT’s support for this industry is irresponsible and highly concerning.”

Lawmakers have warned that the grid could be subject to another collapse due to increased energy demand by miners. This is similar to the power outage that killed 246 people in February 2021.

ERCOT’s “demand response” to enrich miners

The ERCOT Demand Response Program is designed to pay energy consumers who voluntarily reduce their use during periods of high energy demand.

In early June, miners in the state saved up to 1,000 megawatts of energy in total. But lawmakers argued that economic incentives were driving their decision.

Texas’ largest miner, Riot Blockchain, reportedly made about $9.5 million from participating in the ERCOT program, which is 560 more than it made from selling bitcoin in July 2022. It was a million dollars.

According to lawmakers:

“Bitcoin miners profit from mining that puts a heavy strain on the power grid. And during peak demand periods when it becomes less profitable to continue mining, they stop mining operations and no.”

Lawmakers added that it would be unfair to pay cryptocurrency miners to remove the energy load they add to the grid at the expense of toll payers.

Lawmakers asked ERCOT to provide details on financial allocations to miners, the impact on energy costs for families and local businesses, and the carbon footprint from miners’ operations.

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