US-based Bitcoin miners spent $2.7 billion on electricity in the first few months of 2024. Best Brokers analyst Paul Hoffman revealed that Bitcoin mining in the US consumed a massive 20,822.62 GWh of electricity since the beginning of 2024. As of February, with an average commercial electricity rate of $0.1281 per kWh, this amounts to an expenditure of $2,667,378,196.47.
Bitcoin Mining and Costs
Hoffman also explained that this amount of energy could charge every electric vehicle in the US 87.52 times or provide energy to 1,983,107 households for a year, which is 1.51% of all US households.
Globally, 116,550 Bitcoin worth $8.2 billion have been mined to date, with US miners producing 44,102 Bitcoin or 37.84% of global production. Before the halving event in April, mining 1 Bitcoin required 407,059.01 kilowatt-hours (kWh) of electricity, costing approximately $52,144.26. Since then, mining 1 Bitcoin requires 862,635.55 kWh, costing about $110,503.61 at average commercial rates.
Despite high energy usage, Bitcoin mining stands out as the only primary global industry predominantly supported by sustainable energy. In January, the Bitcoin ESG Forecast revealed that sustainable energy usage in Bitcoin mining reached an all-time high of 54.5%, with sustainable mining increasing by 3.6% throughout 2023.
What’s Happening in the Mining Sector?
Following the mining ban in China and the effective ban in Kazakhstan, miners have predominantly shifted to greener grids in North America or off-grid sustainable sites. Bitcoin’s total supply is 21 million, and 19.5 million Bitcoin have been mined so far.
With these developments in the mining sector, environmental factors continue to remain in focus. Many experts do not hesitate to claim that Bitcoin mining significantly harms the environment. Meanwhile, mining activities using renewable energy continue to be a topic of discussion. Additionally, many mining devices have become obsolete following the Bitcoin halving event.
