June 12, 2024

Taylor Daily Press

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Bitcoin miners will spend $2.7 billion on electricity in the United States by 2024

Bitcoin miners will spend $2.7 billion on electricity in the United States by 2024

US Bitcoin miners spent $2.7 billion on electricity in the first months of 2024. “Since the beginning of 2024, Bitcoin mining in the US has consumed 20,822.62 GWh of electricity” Thus Paul Hoffman of Best Brokers. “At February’s average rate of $0.1281 per kWh, this would cost $2,667,378,196.47.”

High amount of electricity

Hoffman explains how electric it really is. “This amount of energy could charge every electric vehicle in the United States 87.52 times, or power 1,983,107 homes for a year, which is approximately 1.51% of all homes.

Globally, 116,550 Bitcoin ($8.2 billion) will be mined from digital mines in 2024. US miners account for 44,102 bitcoins, or about 37.84% of global production.

Hoffman says that before the halving, miners spent $52,144 in electricity to mine one bitcoin. Now it has risen to an incredible $110,503. It means that miners are currently making losses.

However, Hoffman calculates the average business cost of electricity. Miners are of course located in strategic locations, so they pay less for their energy and can still make a profit.

Bitcoin and Sustainable Energy

Despite its high energy consumption, Bitcoin mining is the only global industry powered primarily by sustainable energy.

In January, Bitcoin ESG Forecast revealed that the network runs on 54.5% renewable energy. This is an increase of 3.6% compared to 2023.

After Bitcoin mining bans in China and Kazakhstan, miners mainly moved to green energy grids in North America.

Currently, about 19.5 million of the 21 million bitcoins are in circulation by miners. That way, far fewer bitcoins will hit the market in the coming years, which should have a positive effect on the price in the long run.

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