February 27, 2024

Taylor Daily Press

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Bitcoin now consumes more than 2% of all electricity in the US

Bitcoin now consumes more than 2% of all electricity in the US

Since the ban in China, the US has become more popular for Bitcoin (BTC) mining.

Recently, the Department of Energy's Energy Information Administration (EIA) asked all miners to submit detailed data on their energy consumption.

A preliminary study by the EIA showed that Bitcoin miners could use more than 2% of the total electricity in the United States.

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Huge Growth of Bitcoin Miners in US After China Ban

Although there are still some small miners mining crypto at home, most Bitcoin mining is now done in so-called Bitcoin farms.

These are large installations with specialized hardware made for mining. However, the biggest costs for miners are related to electricity.

For years, most miners were in China due to cheap energy. It was especially popular to operate next to hydroelectric plants. At least, until China introduces a complete ban on crypto and mining in 2021.

After Prohibition, a large portion of the miners moved to the United States, mainly to Texas. The state offers relatively cheap electricity, especially when the weather is calm. However, when the weather in Texas is too hot or too cold, the miners have to stop operations, but they are compensated for this.

In the six months since the ban in China, the share of Bitcoin mining in the US has increased from about 18% to 37.8% in 2022. Cambridge Bitcoin Electricity Consumption Index. Meanwhile that stake could be even higher.

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More than 2% of electricity in the US goes to Bitcoin mining

However, there appears to be some uncertainty in consumption estimates. That's why the EIA recently decided to call on all mining companies to report their consumption in detail.

A Preliminary investigation The EIA concludes that energy use by miners in the U.S. has grown rapidly in recent years.

According to the EIA, 2.3% of all electricity in the US can already go to Bitcoin mining. This corresponds to the energy consumption of a small state.

The government agency says this is worrying. For example, some old fossil fuel plants may have already shut down if they can't provide electricity to bitcoin miners.

As a result, Bitcoin miners are accused of contributing to the emissions of such fossil fuel plants.

This does not apply to all Bitcoin miners. More than 50% of companies now get their energy from green sources.

Miners regularly settle next to natural gas fields, which provide Bitcoin miners with their excess energy. Otherwise, these types of companies will burn off their methane gas, which is even worse for the environment.

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