According to a new report, cryptocurrency mining in the United States has more than doubled in the past year and now uses more electricity than the entire country of Argentina.
The cost of mining cryptocurrency in the U.S. is nearly a tenth of what it was a year ago, thanks to inexpensive electricity and falling prices for computing power provided by graphics processing units (GPUs). The mining industry’s annual carbon footprint is pegged at 55 million metric tons, equivalent to Kansas City’s, even though miners account for “only 0.08% of America’s total electricity consumption.”
According to a new report, it requires a lot more power than most people realise. According to the report, cryptocurrency mining currently accounts for 0.6% of global electricity consumption and is expected to grow substantially over time:
The cost of mining cryptocurrency in the U.S. is nearly a tenth of what it was a year ago, thanks to inexpensive electricity and falling prices for computing power provided by graphics processing units (GPUs), which allow miners to perform complex calculations at high speeds without overheating.
Cryptomining Capacity in U.S. Rivals Energy
Crypto Mining has become a popular way to generate digital currency. Cryptojacking is the practice of mining cryptocurrencies without the consent of the user. Energy consumption for crypto mining is rising, which could have serious environmental implications.
This study compares crypto mining capacity in Houston, Texas, to energy use in other U.S. cities. Cryptojacking is on the rise and could have serious implications for the environment.
Houston is one of the largest energy consumers in the United States. In Argentina, where electricity rates are among the highest in the world, some miners have recently begun selling their hardware and moving their operations overseas because they can no longer compete with other countries with cheaper electricity costs, such as China and Vietnam.
While some countries are still welcoming cryptocurrency miners, others are beginning to crack down on how much energy they consume from non-renewable sources like coal or oil, not just out of environmental concerns but also because those kinds of resources aren’t cheap anymore.
The mining industry’s annual carbon footprint is pegged at 55 million metric tons . it is equivalent to Kansas City’s even though miners account for “only 0.08% of America’s total electricity consumption.”
Every single ton of coal burned in the U.S. has a specific amount of carbon dioxide associated with it, said , an energy analyst. Who studies the economics of power generation at Platts Analytics, an S&P Global company. “It’s all about how much you burn and how much CO2 comes out.”
Cryptocurrency mining is a process by which transactions are verified and added to a public ledger called blockchain, creating new units at one end and releasing new currency at another. The process requires huge amounts of computing power, which generates a lot of heat and, therefore, additional electricity.
The U.S. consumes about 100 billion kilowatt hours per year from all sources, according to an Energy Information Administration report published earlier this month. The most recent available data on American energy use. If you were wondering how much power Bitcoin miners would need for their operations, here’s your answer: It’s enough to power over 6 million average American homes each month.
Some people say that the carbon footprint of cryptocurrency mining will eventually be offset by the low-carbon alternative of renewable energy sources like wind or solar power. And at least we know there are plenty of them around. The U.S., China, and Russia together account for more than half of all hydroelectricity produced worldwide.