Most have heard of cryptocurrency, especially Bitcoin. Who pays for Bitcoin production? You do. Whether invested or not, electricity costs rise in areas where Bitcoin is produced. It takes a HUGE amount of power to generate Bitcoin, which is referred to as mining Bitcoin.
The process of creating Bitcoin consumes around 204 terawatt-hours of electricity annually, more power than used by countries like Sweden, Poland, Egypt, Thailand and about 190 other countries around the world. China banned any new crypto mining facilities last year and will gradually shut down any currently operating, due to the amount of energy consumed in their mining operations. China likely also implemented the ban to curtail financial risk, but considerations on the energy consumption should not be underestimated.
In upstate New York, where about a quarter of U.S. crypto mining takes place, residential electricity costs have risen $165 million per year, while commercial rates have gone up almost an additional $80 million per year. As more crypto miners set-up shop in places outside of China, more local municipalities will see similar increases in electric bills. Texas is a popular destination for new crypto miners- How much will electric bills rise there?
Read this insight from the Chicago Booth Review and let me know what you think.
~ Brian Kasal- The Leadership Matrix
Click Here- Why You’re Paying Bitcoin’s Energy Bill
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