Mining bitcoins isn’t as profitable as it used to be
..but the industry is equivalent to CO2 emissions of 6 million cars
The energy needed to mine bitcoins in the United States creates as many emissions as about 6 million cars a year. The Environmental Protection Agency said in a report. They therefore call on US states to ban new activities for the mining of the digital coins in order not to further damage the climate.
Mining bitcoins by ASICs uses a lot of energy, due to the complex calculations involved. According to the environmental organizations, mining bitcoin in the US caused CO2 emissions of 27.4 million tons in the period between mid-2021 and 2022. That’s three times the emissions of the largest coal-fired power plant in the U.S. and almost equal to the annual emissions of 6 million cars.
38% of bitcoin comes from the US
According to a recent White House study, 38 percent of global bitcoin mining now takes place in the US. That was only 3.5 percent in 2020. Because China has drastically restricted the mining of bitcoins, many bitcoin companies have gone to the US or are expanding their US activities.
An interest group for bitcoin miners in the US says that the crypto industry consumes relatively little power and that more than half of that energy comes from renewable sources.
Cryptocurrencies at lowest level since 2020
Due to a drop in the value of crypto coins, bitcoin was almost at its lowest level since 2020 last Monday. Crypto traders are bracing for the global economic measures to curb inflation.
The value of a bitcoin fell by 6.7 percent to $ 18,500. Ether lost 6.2% to $ 1,300. XRP and Polkadot, among others, suffered heavier losses.
Investors are gearing up for a further rate hike from the Federal Reserve, among others, this week to counter the skyrocketing inflation in the United States. As a result, investors are more cautious. The UK central bank is also expected to raise interest rates substantially.