Miners saw a significant reduction in profitability following the Bitcoin Halving event in April, which decreased block rewards from 6.25 BTC to 3.125 BTC.
In the initial months of 2024, Bitcoin miners in the United States incurred an electricity cost of $2.7 billion, as reported by analyst Paul Hoffman from Best Brokers. This expense corresponds to a staggering consumption of 20,822.62 GWh of power, calculated at the average commercial rate of $0.1281 per kWh as of February.
Hoffman elaborated that this energy expenditure could alternatively power 1,983,107 households for a year or charge every electric vehicle in the country approximately 87.52 times, constituting 1.51% of total U.S. households.
On a global scale, Bitcoin miners have collectively generated 116,550 BTC, valued at $8.2 billion, since the beginning of the year. U.S. miners contributed 44,102 BTC, accounting for 37.84% of the global output. Prior to the halving event in April, the energy requirement for mining 1 BTC was 407,059.01 kWh, equating to approximately $52,144.26. Post-halving, this figure increased to 862,635.55 kWh per BTC, costing around $110,503.61 at the prevailing average commercial rates.
Although Bitcoin mining is notorious for its significant energy consumption, it stands as the primary global industry largely powered by sustainable energy sources. According to The Bitcoin ESG Forecast released in January, the utilization of sustainable energy in Bitcoin mining has surged to a record-breaking 54.5%, marking a 3.6% increase in sustainable mining overall throughout 2023.
Following the ban on mining activities in China and its effective restriction in Kazakhstan, miners have predominantly relocated to regions with greener grids in North America or sustainable off-grid locations. As of now, approximately 19.5 million Bitcoins have been mined out of the total capped supply of 21 million.
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