Bitcoin mining uses a lot of energy. The US government is about to find out how much.

Posted under: Fintech
Date: 2024-02-09
Bitcoin mining uses a lot of energy. The US government is about to find out how much.

The United States experienced a surge in cryptocurrency mining operations following China's ban on bitcoin. This led to increased energy consumption, stressing local grids and raising concerns about environmental impacts. The U.S. Energy Information Administration initiated a comprehensive survey of 82 commercial crypto miners to quantify their energy use, aiming to address the industry's opacity. Initial estimates suggest crypto mining may consume 0.6% to 2.3% of total U.S. electricity annually, with significant regional effects. Cryptocurrency mining's reliance on fossil fuels has revived dormant power plants, sparking debate over its environmental footprint. Despite claims of economic benefits by mining companies, concerns persist about energy overconsumption and community impacts. Policy responses, like New York's moratorium on new fossil-fuel-powered mining facilities, highlight growing recognition of the industry's implications.

Read more at: grist.org