June 4, 2024
US Bitcoin Mining to Consume $2.7B in Electricity in 2024
Latest Cryptocurrency News

US Bitcoin Mining to Consume $2.7B in Electricity in 2024

Bitcoin mining in the United States has cost $2.7 billion in electricity in the first few months of 2024. Paul Hoffman, an analyst at Best Brokers, stated, “Since the start of 2024, Bitcoin mining in the U.S. has consumed an enormous 20,822.62 GWh of electric power. At the average commercial electricity rate of $0.1281 per kWh as of February, this amounts to an expenditure of $2,667,378,196.47.”

Historical annualized electricity consumption of Bitcoin mining. Source: Cambridge Bitcoin Electricity Consumption Index

Energy Consumption and Impact

Hoffman elaborated on the significant energy consumption, noting, “This amount of energy could charge every electric vehicle in the U.S. 87.52 times or power 1,983,107 households for a year, which is 1.51% of all U.S. households.” This highlights the extensive energy usage by mining operations and their potential impact on broader energy consumption.

Globally, Bitcoin mining has produced 116,550 BTC, worth $8.2 billion, year to date, with U.S. miners contributing 44,102 BTC or 37.84% of the global output. Before the halving event in April, mining 1 BTC required 407,059.01 kilowatt-hours (kWh) of electricity, costing around $52,144.26. Post-halving, the electricity needed to mine 1 BTC has increased to 862,635.55 kWh, costing approximately $110,503.61 at average commercial rates.

Sustainable Energy Use in Bitcoin Mining

Despite the high energy consumption, Bitcoin mining stands out as the only primary global industry predominantly powered by sustainable energy. The Bitcoin ESG Forecast in January indicated that sustainable energy use in mining reached a record high of 54.5%, with sustainable mining increasing by 3.6% overall in 2023.

Following the ban on mining in China and its effective prohibition in Kazakhstan, many miners have relocated to greener grids in North America or sustainable off-grid sites. Approximately 19.5 million Bitcoins have been mined so far, approaching the total supply limit of 21 million.

This shift towards sustainable energy sources underscores the industry’s response to environmental concerns, positioning mining as a key player in the transition to renewable energy. As the industry continues to grow, the focus on sustainable practices will likely play a crucial role in its development and acceptance.

Image by evening_tao on Freepik

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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