As a crypto investor with experience in the industry, I find the recent data on Bitcoin mining energy usage and costs alarming. The $2.7 billion worth of electricity consumed by US miners since the beginning of 2024 is an astounding figure, especially considering that the cost of mining one Bitcoin has doubled post-halving.
In the first few months of 2024, US Bitcoin miners used electricity worth $2.7 billion.
Paul Hoffman, an analyst at Best Brokers, revealed that the amount of electrical power used for Bitcoin mining in the United States since the beginning of 2024 totals an impressive 20,822.62 GWh. This is equivalent to approximately $2,667,378,196.47 when considering the average commercial electricity rate of $0.1281 per kWh as of February.
The Bitcoin halving that occurred on April 20, 2024, significantly impacted the crypto-mining sector, most notably influencing energy consumption and operational costs.
As an analyst, I’ve observed that the energy requirement for extracting one Bitcoin has nearly doubled since the block reward decreased from 6.25 to 3.125 BTC. This increase in energy usage puts additional financial pressure on mining companies due to the high costs associated with electricity and hardware.
Every day, mining operations consume approximately 384.5 million kWh of electricity to produce around 450 Bitcoins. This amounts to roughly 140.34 terawatt-hours (TWh) each year, surpassing the annual power usage of most countries except for those in the top 26 consumption rankings.
In the United States during the year 2024, this represents the daily expense required to mine one Bitcoin. Following the April halving event that year, the cost more than doubled.
In the United States, this energy is consumed daily and contributes to 37.9% of global Bitcoin mining. U.S. mining operations expend around $18.65 million on energy costs every day, considering an average electricity price of $0.1281 per kWh.
As a crypto investor, I used to earn approximately 340.82 Bitcoins per day through U.S. mining operations, powered solely by the grid electricity, prior to the Bitcoin halving in April 2024. Regrettably, this profitable setup is no longer feasible after the halving event.
American mining businesses continue to function, indicating their reliance on predominantly renewable energy or exclusive power agreements for their electricity needs.
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2024-05-28 23:33