As Crypto Prices Fall, So Does the Industry’s Energy Use
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When Bitcoin prices fell below $20,000 this month, its energy use fell as well. Bitcoin mining involves lots of energy use because it requires solving complex computer problems to release new coins. A single transaction still uses as much energy as a U.S. household in 50 days. The market value of Bitcoin has fallen by half since May 1 and its energy consumption has fallen for the first time since the pandemic. The decline is because of how cryptocurrency mining works, and, now that the price per coin is lower, the operations no longer pay for themselves. For mining operations in Kazakhstan to decline, the mining equipment is less efficient and the energy grid is also largely powered by coal, which makes the decline in mining good news for the climate. Source