US Bitcoin Miners' Hefty $2.7 Billion Electricity Bill Boosts Shift Towards Green Energy
Summary:
Bitcoin miners in the US spent $2.7 billion on electricity in the early months of 2024, contributing to a massive energy consumption - enough to power nearly 2 million households for a year. Despite the high energy usage and rising costs, the industry has seen a surge in sustainable mining practices, with 54.5% of energy used now coming from eco-friendly sources. Following China’s mining ban, miners have largely relocated to greener grids in North America or environmentally sustainable locations.
Bitcoin miners based in the United States have shelled out a staggering $2.7 billion for electricity in the initial months of 2024. Analyst Paul Hoffman from Best Brokers, highlighted that American Bitcoin mining has drained an immense 20,822.62 GWh of electrical energy since the inception of 2024. Based on the commercial electricity rate, pegged at $0.1281 per kWh in February, this translates to a hefty spend of approximately $2,667,378,196.47.
As an illustration of the vast energy use, Hoffman revealed that the total amount of power consumed could fuel all electric vehicles across the U.S. 87.52 times over, or it could provide year-round electricity for 1,983,107 homes. This constitutes 1.51% of household units across the entire nation.
Internationally, Bitcoin production has reached 116,550 units this year, amounting to an approximate value of $8.2 billion, with U.S.-based miners producing 44,102 BTC, or 37.84% of the worldwide total. Prior to Bitcoin’s April halving event, mining a single Bitcoin required 407,059.01 kilowatt-hour (kWh) of power, resulting in electricity costs of about $52,144.26. Following the halving, the energy requirement has escalated drastically to a whopping 862,635.55 kWh to mine one Bitcoin, inflating the costs to nearly $110,503.61, based on standard commercial rates.
Interestingly, despite the alarming energy consumption, the Bitcoin mining industry relies majorly on sustainable sources of energy. A report from The Bitcoin ESG Forecast in January confirmed a commendable surge in the use of environmentally-friendly energy for Bitcoin mining, clocking a record high of 54.5%. This shows a 3.6% overall increase in sustainable mining practices since 2023.
Post a mining ban in China and equivalent restrictions in Kazakhstan, the majority of miners have relocated to greener North American grids or sustainable off-grid locations. Approximately 19.5 million out of a total 21 million Bitcoins have been mined as of now.
Published At
5/28/2024 7:20:47 PM
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