According to an analysis conducted by the U.S. Energy Information Administration (EIA), Bitcoin miners in the country consume the same amount of energy as the entire population of the state of Utah. And that’s referring to the lowest usage.
Electricity use in mining operations equates to between 0.6% to 2.3% of demand across the entire North American country over the past year. For the first time, the U.S. Energy Information Administration (EIA) shares an estimate.” Similarly, mining activity has generated controversy and concerns for legislators and grid operators regarding the voltage needed on the grid during peak demand periods and the energy costs and carbon dioxide emissions that affect the environment. However, increasingly, environmental organizations demand immediate solutions to reduce energy consumption.
Mining has been going on for more than ten years
Although mining began in the country a decade ago, the number of companies that have come to the United States from China has increased recently, especially after China, a major player in the industry, banned cryptocurrency mining in 2021. In recent years, several miners have been able to go public on the New York Stock Exchange, establishing their operations in states such as New York and Texas, two states with the most significant energy potential in the country.
It is estimated by the U.S. Energy Information Administration (EIA) that there are about 137 mining facilities across 21 states.
What is Bitcoin mining?
Bitcoin mining requires large amounts of energy. Miners use specialized computers to validate transactions on the network’s blockchain and receive rewards, most of which are delivered in tokens.
This mechanism is known as proof of consensus and is not only used by Bitcoin. Other market cryptocurrencies, such as Monero and Dogecoin, also use this consensus for their operation.
Previously, Ethereum also had a proof-of-work consensus until September 2022, when it decided to use proof-of-stake and stop using miners for its operation.
In the report published by the U.S. Energy Information Administration (EIA), it is also mentioned that work is going to be done to find solutions to the energy demands of miners. In addition, they will look for ways to alleviate the impact suffered by the environment with so many carbon emissions and their effects. Even more so, when Bitcoin is the cryptocurrency with the highest market capitalization, and more people are interested in investing daily, the blockchain constantly expands and operates.
