Bitcoin Mining: 2024 Energy Usage and Sustainability Trends

During the initial months of 2024, Bitcoin miners in the U.S. incurred an astounding $2.7 billion on electricity, as revealed by analyst Paul Hoffman from Best Brokers. The electric power utilization for Bitcoin mining in the U.S. amounted to 20,822.62 gigawatt-hours at an average commercial electricity rate of $0.1281 per kilowatt-hour, resulting in the substantial total expenditure. This energy outlay could charge every electric vehicle in the U.S. nearly 88 times or sustain 1,983,107 households for a year, equivalent to 1.51% of all U.S. households. On a global scale, the mining of 116,550 Bitcoins valued at $8.2 billion has been noted in 2024, with U.S. miners contributing 44,102 BTC, comprising 37.84% of the overall global production. The recent Halving event in April significantly impacted miners' profitability by reducing block rewards from 6.25 BTC to 3.125 BTC. The cost of mining 1 BTC surged post-Halving, presenting challenges for miners in maintaining profitability. Despite concerns over energy usage, Bitcoin mining primarily relies on sustainable energy sources. A substantial portion of global Bitcoin mining, approximately 54.5%, is conducted using renewable energy, showcasing a noteworthy increase in sustainable mining practices in 2023. In response to mining restrictions in China and Kazakhstan, miners are shifting towards eco-friendly energy solutions in North America and off-grid locations. To date, around 19.5 million Bitcoins have been mined out of the total 21 million, emphasizing the importance of embracing sustainable practices in the crypto mining sector to address environmental concerns while ensuring economic sustainability.