The US Energy Information Agency (EIA) shed light on the significant impact of Bitcoin mining on US electricity consumption in a recent report.
According to preliminary estimates from the EIA, large-scale cryptocurrency transactions currently consume 0.6% to 2.3% of the entire U.S. electricity supply. To put this in perspective, that's like adding an entire state's worth of electricity demand to the grid in just the last three years.
As cryptocurrency mining has increased in the United States, so have concerns about the high-energy nature of this work and its impact on the U.S. electric power industry. Strain on the electric grid during peak demand periods, the potential for higher electricity prices, and impacts on energy-related carbon dioxide (CO2) emissions were among the concerns expressed to the EIA.
According to its report, EIA will conduct a mandatory survey to systematically evaluate electricity consumption associated with cryptocurrency mining activities.
Cryptocurrency mining began in the United States about a decade ago but began to expand rapidly in 2019. This latest growth is largely due to cryptocurrency mining operations moving from China to the US after China banned digital currency mining in 2021.
*This is not investment advice.