Bitcoin mining strains electricity grids worldwide, with both legal and illegal operations competing for limited clean energy resources.
Bitcoin Mining Fuels Power Shortages
Illegal crypto mining operations in Abkhazia, a Russia-backed Georgian region, have worsened energy shortages.
Despite a ban, mining farms operate using cheap hydropower, leading to crippling blackouts and forcing the region to rely on Russian fossil fuel energy.
Global Energy Demand for Crypto Surges
Bitcoin mining consumes more electricity than Pakistan, a country of 230 million people, according to a 2023 UN study.
The International Energy Agency predicts a 40% rise in crypto-related electricity consumption between 2022 and 2026.
Trump’s Push to Make the U.S. a Crypto Hub
President Donald Trump has pledged to make the U.S. the “crypto capital”, driving electricity demand up by 16% by 2029.
Crypto and AI data centers are expected to play a major role in this increased energy usage.
Miners Turn to Renewable Energy
Some firms are shifting to clean energy solutions. An example is how MARA Holdings acquired a Texas wind farm to power mining operations. The company also expanded into Paraguay, utilizing hydropower for crypto mining.
Balancing Innovation and Sustainability
While crypto mining supports blockchain innovation, experts warn it may exacerbate energy crises in regions with limited clean energy resources.
Governments face a growing challenge in regulating crypto mining while ensuring energy security and environmental sustainability.
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