©Reuters.Power-hungry Bitcoin and other cryptocurrencies will drain power from mining across Australia in 2023: Report
Benzinga – According to a recent report from the Energy Information Administration (EIA), the global cryptocurrency mining industry will Australian Overall usage. The report also highlights the significant growth in the industry. Americaurged the government to take a closer look at energy consumption.
what happened: An EIA report released last week revealed that energy consumed by global cryptocurrency mining accounts for 0.2% to 0.9% of global electricity demand, Business Insider reported on Tuesday. . In the United States, this number represents 0.6% to 2.3% of the nation’s electricity demand, or the equivalent of the usage of Utah or West Virginia.
Cryptocurrency mining involves the process of solving complex cryptographic puzzles to add new tokens to the blockchain, a process that requires considerable computing power and, as a result, large amounts of electricity. .
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While the energy-intensive nature of the crypto industry has long been known, the EIA report highlights how the crypto industry is becoming a major contributor to U.S. electricity, including its potential strain on the power grid, rising power prices, and carbon impact. It highlights growing concerns about the impact on the sector. Carbon dioxide emissions.
The report also noted that the share of Bitcoin mining conducted in the United States has increased significantly, rising from 3.4% in January 2020 to 37.8% in January 2022. This increase has prompted the U.S. government to take a closer look at the industry’s energy use. This is evidenced by the recent approval of an emergency request from the EIA to collect data from commercial crypto miners.
why is it important: This report highlights growing concerns about the environmental impact of crypto mining, which is a topic of debate within the industry. The EIA findings add weight to claims that industry energy consumption can have a significant impact on the environment and the energy sector.
However, the report also highlights the rapid growth of the United States as a major player in the global cryptocurrency mining industry. This growth could have a significant impact on the U.S. energy sector and prompt further discussion on transitioning to sustainable energy sources for crypto mining. It could also affect the global distribution of cryptocurrency mining operations, with some operations relocating to Russia due to energy surpluses.
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