US gov’t says crypto mining used as much electricity as Australia in 2023

[KARAH RUCKER]

SOME CALLING IT THE FUTURE OF FINANCE, DIGITAL CRYPTO CURRENCY, LIKE GOLD, STILL RELIES ON MINING… BUT UNLIKE GOLD IT IS NOT MINED FOR IN DARK CAVERNS.

CRYPTO MINING TAKES PLACE ONLINE. 

AND LIKE THE GOLD RUSH OF OLD, CRYPTO-MINES ARE POPPING UP MORE AND MORE, AND USING AN EXTRAORDINARY AMOUNT OF ELECTRICITY.

ACCORDING TO THE U-S ENERGY INFORMATION ADMINISTRATION, IN 20-23 CRYPTO MINERS AROUND THE WORLD USED AS MUCH ELECTRICITY AS ALL OF AUSTRALIA. 

PROMPTING THE U-S GOVERNMENT TO COLLECT DATA ABOUT THE INDUSTRY’S ENERGY USE IN AMERICA.

RYAN BROWN – CNBC CRYPT CORRESPONDENT: “PEOPLE HAVE LONG BEEN WARNING ABOUT THE, YOU KNOW, INSANE AMOUNT OF ENERGY THAT IS REQUIRED TO MINE BITCOIN.”

[KARAH RUCKER]

CRYPTOCURRENCY RELIES ON MINERS TO SCOUR THE INTERNET TO FIND AND RECORD CRYPTO TRANSACTIONS BY SOLVING HIGHLY COMPLEX PUZZLES.

EACH PUZZLE THAT IS SOLVED ADDS A BLOCK TO WHAT IS CALLED THE BLOCK CHAIN.

RYAN BROWN – CNBC CRYPT CORRESPONDENT: “IF PERSON A IS SENDING BITCOIN TO PERSON B THAT TRANSACTION NEEDS TO BE VERIFIED BY MINERS. ONCE VERIFIED EACH PART OF THE BLOCKCHAIN NEEDS TO BE UPDATED WITH THAT TRANSACTION. MINERS ARE THEN REWARDED IN BITCOIN.”

[KARAH RUCKER]

AND WITH CRYPTOCURRENCY’S POPULARITY ON THE RISE, MANY MINERS SEE A LUCRATIVE OPPORTUNITY.

THE CAMBRIDGE BITCOIN ELECTRICITY CONSUMPTION INDEX SAYS THE SHARE OF BITCOIN MINING IN THE U-S JUMPED FROM 3-POINT-4 PERCENT IN JANUARY 20-20 TO 37-POINT-8 PERCENT IN JANUARY 20-22.

CONCERNS ABOUT CRYPTOMININGS ENERGY CONSUMPTION HAVE BEEN GROWING FOR YEARS. ACCORDING TO THE NEW YORK TIMES, BITCOIN MINING USES 7-TIMES THE AMOUNT OF ELECTRICITY THAT ALL OF GOOGLE USES IN ONE YEAR.

IN THE U.S. ALONE, CRYPTO MINING ACCOUNTS FOR UP TO 2-POINT3-PERCENT OF THE ENTIRE COUNTRY’S ELECTRICITY DEMAND. THE SAME AS THE ENTIRE STATE OF UTAH OR WEST VIRGINIA.

THE WHITE HOUSE AUTHORIZED AN EMERGENCY DATA REQUEST TO ALLOW  THE U-S ENERGY INFORMATION ADMINISTRATION REQUIRE CERTAIN CRYPTO MINERS TO HAND OVER DETAILS OF THEIR ENERGY USE.

EIA ADMINISTRATOR Joe DeCarolis SAYING

QUOTE: 

“We will specifically focus on how the energy demand for cryptocurrency mining is evolving, identify geographic areas of high growth, and quantify the sources of electricity used to meet cryptocurrency mining demand.”