A new report by analyst Paul Hoffman of Best Brokers raises concerns about the environmental impact of Bitcoin mining in the United States. According to Hoffman, Bitcoin miners have consumed a staggering 20,822.62 Gigawatt-hours (GWh) of electricity in the first few months of 2024, resulting in a cost of $2.7 billion. This energy usage is equivalent to powering nearly 2 million U.S. households for a year.
“Currently there are 450 Bitcoins mined daily and this costs the mining facilities a whopping 384,481,670 kWh of electrical power. This comes at 140,336 GWh yearly and is more than the annual electricity consumption of most countries, save for the 26 most power-consuming ones,” the report says.
The report highlights the significant environmental footprint of Bitcoin mining. However, it also acknowledges a growing focus on sustainability within the industry. Hoffman notes that over half (54.5%) of global Bitcoin mining now utilizes renewable energy sources. This trend is likely driven by the exodus of miners from regions like China and Kazakhstan with restrictive regulations on cryptocurrency mining.
The report also touches upon the recent Bitcoin halving event, which cut miner rewards in half, impacting their profitability. This, coupled with the rising energy costs, paints a complex picture for the future of Bitcoin mining in the United States. While the industry grapples with its environmental impact, a shift towards sustainable practices offers a glimmer of hope.
