Bitcoin mining in the US is not just a digital revolution—it's driving economic growth, creating jobs, and reshaping local communities. This report dives into the numbers and implications of this rapidly evolving sector.

Report: US bitcoin mining industry generates over 31,000 jobs

With the crypto winter continuing to consume the crypto miner's income, and&nbsp;the financial epidemic spreading throughout the sector, electricity consumption by the most prominent cryptocurrency networks has decreased by up to 50 per cent, reported the Guardian.&nbsp;

According to estimates made by the crypto analyst Digiconomist, the bitcoin network's electricity consumption has decreased by a third from its high on 11 June and down to an annualised figure of 131 terawatt-hours a year.

Also read |&nbsp;<a href="https://www.wionews.com/world/us-crypto-firm-harmony-hit-by-100-million-heist-491627">Hackers steal $100 million worth digital coins from US crypto firm Harmony</a>

Ethereum, the "programmable money" that is experiencing much of the recent explosion in crypto projects, has seen a downfall in electricity usage from a peak of 94TWh a year to 46TWh a year which is the annualised consumption of Qatar.

For both the companies, the reason for the fall remains the same.&nbsp;

The electricity usage for a cryptocurrency is determined by "mining." In crypto mining, people essentially use purpose-built computers to generate digital lottery tickets that can reward cryptocurrency payouts.&nbsp;

This process is vital because it holds up the security of the networks. However, it also incentivises the network as a whole to waste significant amounts of energy.

The prices of most cryptocurrencies have fallen by a large proportion, with Bitcoin at nearly $20,000 from its peak at $69,000 (£56,000) earlier this year. The value of rewards to miners has also fallen, which has left them in areas with expensive electricity or older, inefficient practices of mining "rigs," resulting in an inability to turn a profit.

Watch |&nbsp;Why is the crypto market crashing?

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The Dutch economist behind Digiconomist, Alex de Vries, told The Guardian, "This is literally putting them out of business, starting with the ones that operate with suboptimal equipment or under suboptimal circumstances (e.g., inefficient cooling)."

"For bitcoin mining equipment, that's a big issue because those machines cannot be repurposed to do something else. When they're unprofitable, they're useless machines. You can keep them around hoping the price will recover or sell them for scrap," he added.

In comparison to others, Ethereum can be mined using a typical computer. However, it is most profitable to do so using a very powerful graphics card, resulting in widespread supply shortages of the cards, which have turned many gamers against the industry.&nbsp;

Also read |&nbsp;<a href="https://www.wionews.com/business-economy/crypto-industry-fears-contagion-as-bitcoin-slips-under-20000-490041">Crypto industry fears contagion as bitcoin slips under $20,000</a>

The fall in mining revenue has resulted in a flood of graphics cards on the second-hand market, with insolvent miners trying to recoup their investments.

The cryptocurrency sector continues to stumble due to the massive price collapse even after the Bitcoin prices are much more stable presently.

(With inputs from agencies)

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With the crypto winter continuing to consume the crypto miner's income, and the financial epidemic spreading throughout the sector, electricity consumption by the most prominent cryptocurrency networks has decreased by up to 50 per cent, reported the Guardian.

With the crypto winter continuing to consume the crypto miner's income, and the financial epidemic spreading throughout the sector, electricity consumption by the most prominent cryptocurrency networks has decreased by up to 50 per cent, reported the Guardian. According to estimates made by the crypto analyst Digiconomist, the bitcoin network's electricity consumption has decreased by a third from its high on 11 June and down to an annualised figure of 131 terawatt-hours a year. Also read | Hackers steal $100 million worth digital coins from US crypto firm Harmony Ethereum, the "programmable money" that is experiencing much of the recent explosion in crypto projects, has seen a downfall in electricity usage from a peak of 94TWh a year to 46TWh a year which is the annualised consumption of Qatar. For both the companies, the reason for the fall remains the same. The electricity usage for a cryptocurrency is determined by "mining." In crypto mining, people essentially use purpose-built computers to generate digital lottery tickets that can reward cryptocurrency payouts. This process is vital because it holds up the security of the networks. However, it also incentivises the network as a whole to waste significant amounts of energy. The prices of most cryptocurrencies have fallen by a large proportion, with Bitcoin at nearly $20,000 from its peak at $69,000 (£56,000) earlier this year. The value of rewards to miners has also fallen, which has left them in areas with expensive electricity or older, inefficient practices of mining "rigs," resulting in an inability to turn a profit. Watch | Why is the crypto market crashing? The Dutch economist behind Digiconomist, Alex de Vries, told The Guardian, "This is literally putting them out of business, starting with the ones that operate with suboptimal equipment or under suboptimal circumstances (e.g., inefficient cooling)." "For bitcoin mining equipment, that's a big issue because those machines cannot be repurposed to do something else. When they're unprofitable, they're useless machines. You can keep them around hoping the price will recover or sell them for scrap," he added. In comparison to others, Ethereum can be mined using a typical computer. However, it is most profitable to do so using a very powerful graphics card, resulting in widespread supply shortages of the cards, which have turned many gamers against the industry. Also read | Crypto industry fears contagion as bitcoin slips under $20,000 The fall in mining revenue has resulted in a flood of graphics cards on the second-hand market, with insolvent miners trying to recoup their investments. The cryptocurrency sector continues to stumble due to the massive price collapse even after the Bitcoin prices are much more stable presently. (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Electricity used to mine Bitcoin falls as crypto crisis widens

In a milestone environmental measure, the New York State Legislature has passed a bill that would impose a two-year moratorium on the use of fossil-fuel power plants to provide energy to miners of cryptocurrencies like Bitcoin.

Although Governor Kathy Hochul has not yet signed the bill, if it becomes law, the state will meet its long-term climate goals.

"There is a balancing act involved here, very much a balancing act," the governor said in a statement.

"We have to balance protection of the environment, but also protect the opportunity for jobs that go to areas that don't see a lot of activity, and making sure that the energy that's consumed by these entities, is managed properly."

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The first of its kind bill in the United States has received support from New York lawmakers that want to tap the brakes on the spread of cryptocurrency mining operations that burn fossil fuels.

According to the bill cryptocurrency mining operations "are an expanding industry in the State of New York" that "will greatly increase the amount of energy usage" in the state.

<a href="https://www.wionews.com/photos/how-much-tax-is-imposed-on-cryptocurrency-in-different-countries-worldwide-449585">Also see |&nbsp;How much tax is imposed on cryptocurrency in different countries worldwide?</a>

The bill would impose a moratorium on air permit issuance and renewal for an electric generating facility that utilises a carbon-based fuel to prevent cryptocurrency mining from increasing greenhouse gas emissions.

Complaining that the measure singled out the industry without addressing other fossil fuel use, John Olsen of The Blockchain Association said “The message from the bill and the embrace of that kind of policy is not a good one for an industry that really can go anywhere.”

“We’re very hopeful that the governor realises that the long-term benefits of embracing this industry and this technology far outweigh a potential pause on prospective future emissions,” he added.

Cryptocurrency mining, which requires specialised computers that consume huge amounts of energy, has an extremely adverse impact on the environment.

According to the US Energy Information Administration, bitcoin’s annual electricity consumption was comparable to Hong Kong’s in 2019.

(With inputs from agencies)

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In a milestone environmental measure, the New York State Legislature has passed a bill that would impose a two-year moratorium on the use of fossil-fuel power plants to provide energy to miners of cryptocurrencies like Bitcoin.

In a milestone environmental measure, the New York State Legislature has passed a bill that would impose a two-year moratorium on the use of fossil-fuel power plants to provide energy to miners of cryptocurrencies like Bitcoin. Although Governor Kathy Hochul has not yet signed the bill, if it becomes law, the state will meet its long-term climate goals. "There is a balancing act involved here, very much a balancing act," the governor said in a statement. "We have to balance protection of the environment, but also protect the opportunity for jobs that go to areas that don't see a lot of activity, and making sure that the energy that's consumed by these entities, is managed properly." The first of its kind bill in the United States has received support from New York lawmakers that want to tap the brakes on the spread of cryptocurrency mining operations that burn fossil fuels. According to the bill cryptocurrency mining operations "are an expanding industry in the State of New York" that "will greatly increase the amount of energy usage" in the state. Also see | How much tax is imposed on cryptocurrency in different countries worldwide? The bill would impose a moratorium on air permit issuance and renewal for an electric generating facility that utilises a carbon-based fuel to prevent cryptocurrency mining from increasing greenhouse gas emissions. Complaining that the measure singled out the industry without addressing other fossil fuel use, John Olsen of The Blockchain Association said “The message from the bill and the embrace of that kind of policy is not a good one for an industry that really can go anywhere.” “We’re very hopeful that the governor realises that the long-term benefits of embracing this industry and this technology far outweigh a potential pause on prospective future emissions,” he added. Cryptocurrency mining, which requires specialised computers that consume huge amounts of energy, has an extremely adverse impact on the environment. According to the US Energy Information Administration, bitcoin’s annual electricity consumption was comparable to Hong Kong’s in 2019. (With inputs from agencies) Watch WION's live TV here:

New York passes bill to limit crypto miners using fossil fuel-generated power

Climate groups have claimed that altering codes can reduce bitcoin energy consumption by 99 per cent as a campaign called Change the Code Not the Climate.

The campaign is coordinated by the Environmental Working Group, Greenpeace USA, and several groups battling bitcoin mining facilities in their communities.

An obstacle to large-scale bitcoin mining is finding enough cheap energy to run the huge, power-gobbling computer arrays that create and transact cryptocurrency.&nbsp;

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Bitcoin mining, in simple terms, is the process by which a network of computers checks and validates a block of transactions that then get added to the blockchain. Miners get rewarded for completing a block.

Bitcoin miners unlock bitcoins by solving complex, unique puzzles. As the value of Bitcoin goes up, the puzzles become increasingly more difficult, and it requires more computer power to solve them. Estimates on how much energy Bitcoin uses vary.

It's an expensive business, though, requiring not just sophisticated and fast "rigs" costing upwards of $10,000, but also a huge amount of power. And it's getting pricier.

The seven-day average of total mining cost per transaction validated has fallen to $176.8 from a record $235.57 hit in May last year, data from blockchain.com shows.

"As more miners join the network, each individually earns fewer bitcoin. This is because network difficulty increases in order to slow the issuance of new bitcoin," said Joe Burnett, analyst at infrastructure and mining firm Blockware Solutions.

<a href="https://www.wionews.com/photos/how-much-tax-is-imposed-on-cryptocurrency-in-different-countries-worldwide-449585">Also see |&nbsp;How much tax is imposed on cryptocurrency in different countries worldwide?</a>

Waning mining profitability is also hitting the broader market because some institutional investors, who are unable or unwilling to invest directly in cryptocurrencies, instead buy shares of listed miners or ETFs that track miners as an alternative way of gaining access to the young industry.

Some of the pressures on miners flow from bitcoin's inherent structure. The decentralised blockchain was created anonymously with a final limit of 21 million coins, of which nearly 19 million has already been minted.

It takes around 10 minutes to mine one block and the reward for miners, who currently get 6.25 bitcoin per block, is halved about every four years.

"There could be one miner or a million, it doesn't change anything. There's only one block and a set number of bitcoins issued," said d'Anethan at Amber Group.

“This is a big problem. In part because of where the industry stands now but also because of our concerns about its growth,” said Michael Brune, campaign director and former executive director of Sierra Club.

“Coal plants which were dormant or slated to be closed are now being revived and solely dedicated to bitcoin mining. Gas plants, which in many cases were increasingly economically uncompetitive, are also now being dedicated to bitcoin mining. We are seeing this all across the country,” said Brune.

Brune added: “It’s particularly painful to see this in the electric sector because that is precisely the place where the US has made most of its progress in the last decade,” he said.&nbsp;

''There’s no way we can reach our climate goals if we are reviving fossil fuel plants.''

(With inputs from agencies)

Climate groups have claimed that altering codes can reduce bitcoin energy consumption by 99 per cent as a campaign called Change the Code Not the Climate. The campaign is coordinated by the Environmental Working Group, Greenpeace USA, and several groups battling bitcoin mining facilities in their communities.

Climate groups have claimed that altering codes can reduce bitcoin energy consumption by 99 per cent as a campaign called Change the Code Not the Climate. The campaign is coordinated by the Environmental Working Group, Greenpeace USA, and several groups battling bitcoin mining facilities in their communities. An obstacle to large-scale bitcoin mining is finding enough cheap energy to run the huge, power-gobbling computer arrays that create and transact cryptocurrency. Bitcoin mining, in simple terms, is the process by which a network of computers checks and validates a block of transactions that then get added to the blockchain. Miners get rewarded for completing a block. Bitcoin miners unlock bitcoins by solving complex, unique puzzles. As the value of Bitcoin goes up, the puzzles become increasingly more difficult, and it requires more computer power to solve them. Estimates on how much energy Bitcoin uses vary. It's an expensive business, though, requiring not just sophisticated and fast "rigs" costing upwards of $10,000, but also a huge amount of power. And it's getting pricier. The seven-day average of total mining cost per transaction validated has fallen to $176.8 from a record $235.57 hit in May last year, data from blockchain.com shows. "As more miners join the network, each individually earns fewer bitcoin. This is because network difficulty increases in order to slow the issuance of new bitcoin," said Joe Burnett, analyst at infrastructure and mining firm Blockware Solutions. Also see | How much tax is imposed on cryptocurrency in different countries worldwide? Waning mining profitability is also hitting the broader market because some institutional investors, who are unable or unwilling to invest directly in cryptocurrencies, instead buy shares of listed miners or ETFs that track miners as an alternative way of gaining access to the young industry. Some of the pressures on miners flow from bitcoin's inherent structure. The decentralised blockchain was created anonymously with a final limit of 21 million coins, of which nearly 19 million has already been minted. It takes around 10 minutes to mine one block and the reward for miners, who currently get 6.25 bitcoin per block, is halved about every four years. "There could be one miner or a million, it doesn't change anything. There's only one block and a set number of bitcoins issued," said d'Anethan at Amber Group. “This is a big problem. In part because of where the industry stands now but also because of our concerns about its growth,” said Michael Brune, campaign director and former executive director of Sierra Club. “Coal plants which were dormant or slated to be closed are now being revived and solely dedicated to bitcoin mining. Gas plants, which in many cases were increasingly economically uncompetitive, are also now being dedicated to bitcoin mining. We are seeing this all across the country,” said Brune. Brune added: “It’s particularly painful to see this in the electric sector because that is precisely the place where the US has made most of its progress in the last decade,” he said. ''There’s no way we can reach our climate goals if we are reviving fossil fuel plants.'' (With inputs from agencies)

Altering code can reduce bitcoin energy consumption by 99%, say climate groups

China's electricity-hungry bitcoin mines that power nearly 80 per cent of the global trade in cryptocurrencies risk undercutting the country's climate goals, a study in the journal Nature said on Tuesday.

Bitcoin and other cryptocurrencies are minted by solving puzzles using powerful computers that consume enormous amounts of electricity -- much of it produced by coal plants.

The Nature study found that unchecked, China's bitcoin mines will generate 130.50 million metric tons of carbon emissions by 2024 -- close to the annual greenhouse gas emissions from Italy or oil-rich Saudi Arabia.

Chinese companies with access to cheap electricity and hardware handled 78.89 per cent of global bitcoin blockchain operations as of April 2020, the study said.

Also read |&nbsp;<a href="https://www.wionews.com/business-economy/cryptocurrency-market-value-crosses-2-trillion-mark-for-first-time-375846" hreflang="en">Cryptocurrency market value crosses $2 trillion mark for first time</a>

This involves minting new coins and keeping track of cryptocurrency transactions.

About 40 per cent of China's bitcoin mines are powered with coal, while the rest use renewables, the study said.

But the coal-guzzling rigs are so large they could end up undermining Beijing's pledge to peak carbon emissions before 2030 and become carbon neutral by 2060, it warned.

"The intensive bitcoin blockchain operation in China can quickly grow as a threat that could potentially undermine the emission reduction effort," co-author Wang Shouyang from the Chinese Academy of Sciences told AFP.

The government should focus on upgrading the power grid to ensure a stable supply from renewable sources, Wang said.

"Since energy prices in clean-energy regions of China are lower than that in coal-powered regions... miners would then have more incentives to move to regions with clean energy."

This year the crypto-mining industry is expected to use 0.6 percent of the world's total electricity production, or more than the annual use of Norway, according to Cambridge University's Bitcoin Electricity Consumption Index.

The price of a bitcoin has surged fivefold in the past year, reaching a record high of over $61,000 in March, and is now hovering just below the $60,000 mark.

Given the profits available, Wang said imposing carbon taxes was not enough to deter miners.

China banned trading in cryptocurrencies in 2019 to prevent money laundering, but mining is permitted.

Coal-rich regions are now pushing out bitcoin miners as they struggle to curb emissions.

Last month, Inner Mongolia announced plans to end the power-hungry practice of cryptocurrency mining by the end of April after the region failed to meet annual energy consumption targets.

The region accounted for eight per cent of the computing power needed to run the global blockchain -- a set of online ledgers to record bitcoin transactions.

That is higher than the amount of computing power dedicated to blockchain in the United States.

Nasdaq-listed Bitmain, which operates one of the biggest cryptocurrency mining pools in the world, said they were shifting operations in Inner Mongolia to areas with more hydropower like Yunnan.

China's electricity-hungry bitcoin mines that power nearly 80 per cent of the global trade in cryptocurrencies risk undercutting the country's climate goals, a study in the journal Nature said on Tuesday.

China's electricity-hungry bitcoin mines that power nearly 80 per cent of the global trade in cryptocurrencies risk undercutting the country's climate goals, a study in the journal Nature said on Tuesday. Bitcoin and other cryptocurrencies are minted by solving puzzles using powerful computers that consume enormous amounts of electricity -- much of it produced by coal plants. The Nature study found that unchecked, China's bitcoin mines will generate 130.50 million metric tons of carbon emissions by 2024 -- close to the annual greenhouse gas emissions from Italy or oil-rich Saudi Arabia. Chinese companies with access to cheap electricity and hardware handled 78.89 per cent of global bitcoin blockchain operations as of April 2020, the study said. Also read | Cryptocurrency market value crosses $2 trillion mark for first time This involves minting new coins and keeping track of cryptocurrency transactions. About 40 per cent of China's bitcoin mines are powered with coal, while the rest use renewables, the study said. But the coal-guzzling rigs are so large they could end up undermining Beijing's pledge to peak carbon emissions before 2030 and become carbon neutral by 2060, it warned. "The intensive bitcoin blockchain operation in China can quickly grow as a threat that could potentially undermine the emission reduction effort," co-author Wang Shouyang from the Chinese Academy of Sciences told AFP. The government should focus on upgrading the power grid to ensure a stable supply from renewable sources, Wang said. "Since energy prices in clean-energy regions of China are lower than that in coal-powered regions... miners would then have more incentives to move to regions with clean energy." This year the crypto-mining industry is expected to use 0.6 percent of the world's total electricity production, or more than the annual use of Norway, according to Cambridge University's Bitcoin Electricity Consumption Index. The price of a bitcoin has surged fivefold in the past year, reaching a record high of over $61,000 in March, and is now hovering just below the $60,000 mark. Given the profits available, Wang said imposing carbon taxes was not enough to deter miners. China banned trading in cryptocurrencies in 2019 to prevent money laundering, but mining is permitted. Coal-rich regions are now pushing out bitcoin miners as they struggle to curb emissions. Last month, Inner Mongolia announced plans to end the power-hungry practice of cryptocurrency mining by the end of April after the region failed to meet annual energy consumption targets. The region accounted for eight per cent of the computing power needed to run the global blockchain -- a set of online ledgers to record bitcoin transactions. That is higher than the amount of computing power dedicated to blockchain in the United States. Nasdaq-listed Bitmain, which operates one of the biggest cryptocurrency mining pools in the world, said they were shifting operations in Inner Mongolia to areas with more hydropower like Yunnan.

China's bitcoin mining rush risks derailing climate goals

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