- The Energy Information Agency (EIA) mandates Bitcoin mining disclosures.
- Some consider operational mining disclosures part of a tyrannical move by the federal government.
- Balaji Srinivasan believes Republic states offer more protection against government tyranny.
Bitcoin miners in the US face growing scrutiny, including demands for operational data from the federal government. The Energy Information Agency (EIA,) a branch of the Department of Energy, has mandated miners disclose sensitive information.
The EIA requested miners provide details of their energy supplier, and maximum hash rate, among other things. Commenting on this, investor Balaji Srinivasan interpreted the survey as a ramping up of government tyranny, recommending that individuals and miners flee to Republican states to protect themselves.
Bitcoin Confiscation Fears
Srinivasan drew comparisons between the EIA’s survey demands and firearm registries, arguing such disclosures enable future confiscation by tyrannical authorities. In support of this statement, Srinivasan drew attention to Executive Order 6103, which required citizens to surrender most gold coins and bullion to the federal government during the 1930s.
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In Srinivasan’s view, the miner surveys represent preparatory steps for authorities to conduct similar seizures against miners. Expanding this logic further, Srinivasan stated that such a decree would extend to crypto investors. He recommended that investors take steps to flee to red states, “where property rights are more secure,” while the window of opportunity is still open.
Beyond Srinivasan’s partisan rhetoric, the roots of this clash trace back to the EIA mandating Bitcoin mining disclosures.
The EIA Wants Operational Mining Data
Highlighting the EIA’s mandatory Bitcoin mining disclosures, Dennis Porter, the co-founder of the Satoshi Action Fund, shared a copy of the letter received by a Bitcoin miner that demanded information on “location, energy use, and energy supplier,” as well as details of units in operation, equipment age and efficiency, and hash rate.
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Porter stated that the miner who received this letter had just ten days to respond “or face huge fines or worse.” Blasting the mandatory survey, Porter mentioned that no government should treat a growing industry this way.
The EIA claimed that the mandatory surveys are about accurately evaluating electricity consumption with mining activity. The survey results will serve to “better inform planning decisions and educate the public.”
“Data gathered during the emergency clearance will provide critical insight that informs our approach moving forward,” stated the EIA.
On the Flipside
- Cheap electricity is the primary concern for PoW miners, hampering calls to relocate based on political persuasion.
- Bitcoin currently consumes around 110 Terawatt Hours per year or about 0.55% of global electricity production, equivalent to Sweden’s annual electricity consumption.
Why This Matters
This conflict between authorities and BTC miners cuts to the heart of privacy and appropriate governance tensions. Interestingly, Balaji and Porter have assumed the worst, likely due to an overhang from industry tensions with the SEC. Yet, it’s unclear whether the federal government has nefarious plans in store for miners and crypto investors at this stage.
Read more on the EIA’s requirements for Bitcoin miners here:
Bitcoin Miners Face New Reporting Rules Amid Energy Concerns
Find out about the growing pushback from critics as Bitcoin eyes ATHs here:
Renewed Bitcoin Hype Decried by Naysayers as Another Bubble
