In the early part of 2024, US-based Bitcoin miners have incurred substantial electricity costs amounting to $2.7 billion. Analyst Paul Hoffman from Best Brokers disclosed that Bitcoin mining in the US has consumed 20,822.62 GWh of electricity since the start of the year. With an average commercial electricity rate of $0.1281 per kWh, this translates to an expenditure of $2,667,378,196.47 by February.
Electricity Usage and Equivalencies
Hoffman elaborated that the energy consumed in Bitcoin mining could charge every electric vehicle in the US 87.52 times or power 1,983,107 households for a year, representing 1.51% of all US households. Globally, 116,550 Bitcoins, valued at $8.2 billion, have been mined to date, with US miners contributing 44,102 Bitcoins or 37.84% of global output. Before the April halving event, mining one Bitcoin required 407,059.01 kWh of electricity, costing around $52,144.26. Post-halving, this requirement surged to 862,635.55 kWh, raising the cost to approximately $110,503.61.
What’s Happening in the Mining Sector?
Despite the high energy consumption, Bitcoin mining is noted as the only major global industry primarily supported by sustainable energy. The Bitcoin ESG Forecast in January indicated that sustainable energy usage in Bitcoin mining reached a record 54.5%, a 3.6% rise in 2023. In the wake of mining bans in China and Kazakhstan, miners have shifted to greener grids in North America or off-grid sustainable sites. Out of the total supply of 21 million Bitcoins, 19.5 million have been mined so far.
Key Insights for Stakeholders
– Bitcoin mining in the US is a significant consumer of electricity, with costs exceeding $2.7 billion in early 2024.
– The energy used for Bitcoin mining could alternatively power nearly 2 million US households annually.
– Post-April 2024 halving, the electricity required to mine one Bitcoin has doubled, increasing mining costs significantly.
– Sustainable energy usage in Bitcoin mining has reached an all-time high, marking a trend towards greener practices.
– Mining bans in several countries have pushed miners towards more sustainable energy sources in North America.
In light of these developments, environmental concerns continue to be a focal point, with experts debating the impact of Bitcoin mining on the environment. The increase in renewable energy usage in mining practices and the obsolescence of many mining devices following the Bitcoin halving event are key topics of ongoing discussion.