Bitcoin is once again making headlines — just two weeks after Donald Trump’s election, the cryptocurrency is on the verge of hitting $100,000.
What once cost just 9 RMB in 2011 has surged nearly 80,000-fold over 13 years and four halving events. Recently, Bitcoin has even defied broader market downturns, rallying independently and stunning investors worldwide.
Industry experts widely believe this surge is closely tied to Trump’s victory. Before the election, he promised a bold three-pronged strategy for crypto:
- Add Bitcoin to U.S. strategic reserves and declare it a permanent national asset — “never sell Bitcoin.”
- Replace the current SEC chair to fast-track crypto-friendly regulations and halt development of a central bank digital currency (CBDC), long seen as a threat to decentralized currencies.
- Boost domestic Bitcoin mining and tech innovation to ensure American leadership and prevent dominance by countries like China.
Beyond politics, long-term believers highlight Bitcoin’s inherent anti-inflation properties. Its decentralized structure, fixed supply of 21 million coins, and transparent ledger make it resilient against fiat devaluation — a powerful hedge in today’s volatile economy.
Over the past year alone, Bitcoin has seen major catalysts: ETF approvals, its fourth halving, and now political endorsement. Once labeled a scam, it's now embraced by Wall Street and Silicon Valley alike.
But beneath this financial triumph lies a growing environmental concern — an energy bomb fueled by surging mining activity.
Why Higher Prices Mean Higher Energy Use
At the heart of Bitcoin’s value proposition is energy consumption. Unlike traditional currencies backed by governments or gold reserves, Bitcoin derives its credibility from computational work — proof-of-work (PoW).
Miners use specialized hardware to solve complex cryptographic puzzles. When a block is successfully mined, the miner receives new BTC as a reward, along with transaction fees.
The process is intentionally energy-intensive. This “waste” of electricity is what secures the network — making attacks prohibitively expensive.
According to Huang (a pseudonym), a mining equipment supplier:
“Miners buy machines, plug them in, connect to a pool, and start earning Bitcoin automatically. These devices are servers optimized for SHA-256 hashing — the algorithm behind Bitcoin.”
One of the most efficient models today is the Bitmain Antminer S21. At current network difficulty (as of late 2024), one S21 mines approximately 0.00384 BTC per month. To mine one full BTC requires about 260 S21 units running continuously for 30 days.
Each S21 consumes roughly 2,520 kWh per month, meaning 260 units devour 655,200 kWh — enough to power over 5,400 average U.S. households for a month.
Even then, individual miners rarely succeed alone. Due to massive global competition, most join mining pools to combine computing power and increase their odds of earning rewards.
As Huang explains:
“Without joining a pool, a small miner might run machines for years without ever solving a block.”
This necessity drives consolidation — from independent hobbyists to large-scale industrial operations.
Since China banned crypto mining in 2021, the U.S. has become the world’s top mining hub, accounting for nearly 38% of global hash rate.
According to the Cambridge Bitcoin Electricity Consumption Index (CBECI), annual Bitcoin mining consumes between 67 TWh and 240 TWh — roughly 0.2% to 0.9% of global electricity usage. That’s comparable to the annual consumption of Greece or Australia.
The Hidden Cost: Fossil Fuels and Emissions
Despite advances in renewable energy, nearly 50% of Bitcoin mining still relies on fossil fuels, according to ESG analyst Daniel Batten.
In some U.S. states, crypto firms are repurposing old coal plants for mining operations.
For example, in July 2021, Stronghold Digital Mining announced plans to acquire three waste-coal power plants in Pennsylvania with a combined capacity of 300 MW. Burning waste coal releases high levels of sulfur dioxide, nitrogen oxides, and other pollutants — among the dirtiest forms of energy generation.
Why do companies choose these sites? Cheap, abundant power — especially when regulations are lax.
Huang notes:
“Stable and low-cost electricity is essential. Without it, miners face immediate losses. Plus, mining infrastructure is a 4+ year investment — you need political stability, reliable energy, and minimal natural disaster risk.”
With Trump likely to roll back environmental regulations and promote fossil fuel expansion, combined with his pro-crypto stance, experts predict a rapid acceleration in mining activity — and energy demand.
After each halving event (which cuts block rewards in half), mining becomes less profitable unless prices rise. This forces miners to upgrade equipment and scale operations just to break even — driving up energy use even further.
Beyond Bitcoin: The Broader Crypto Mining Footprint
The crypto boom isn’t limited to Bitcoin. As of 2024, over 9,000 active cryptocurrencies exist across various categories: DeFi tokens, stablecoins, GameFi assets, privacy coins, and more.
While not all require mining, many still rely on Proof-of-Work (PoW) mechanisms. Among the top 100 cryptocurrencies by market cap, six use PoW — including Litecoin and Dogecoin.
These alternative "mineable" coins add significantly to global energy demand.
In Texas — a hotspot for crypto mining — ten major mining firms consume 1,800 MW annually, adding $1.8 billion to statewide electricity costs each year. In West Texas alone, local electricity prices have risen nearly 9% due to mining operations.
The U.S. Energy Information Administration (EIA) has launched an emergency investigation into crypto mining’s energy impact. Concerns include:
- Risk of blackouts during peak demand
- Rising consumer electricity prices
- Increased carbon emissions
As one EIA report stated:
“Public concerns focus on grid reliability, cost shifts to residential users, and environmental consequences.”
With over 34 U.S.-based mining firms contributing substantial CO₂ emissions, the industry’s growth could signal an emerging energy crisis — especially under a deregulated administration.
FAQ: Addressing Key Questions
Q: Does Bitcoin mining really use that much electricity?
A: Yes. Estimates suggest Bitcoin uses between 67–240 TWh per year — comparable to medium-sized countries like Greece or Sweden.
Q: Can renewable energy solve Bitcoin’s environmental problem?
A: Partially. While some miners use wind or solar surplus, nearly half still depend on fossil fuels. True sustainability requires systemic shifts in both energy policy and mining incentives.
Q: Is all cryptocurrency mining this energy-intensive?
A: No. Many newer blockchains use Proof-of-Stake (PoS), which consumes up to 99% less energy than PoW. Ethereum’s transition to PoS in 2022 drastically reduced its footprint.
Q: Will higher Bitcoin prices always lead to more energy use?
A: Generally yes — higher prices incentivize more mining activity until profitability declines due to rising difficulty or costs.
Q: Could regulation curb excessive energy use?
A: Absolutely. Policies limiting fossil fuel use for mining or taxing energy-heavy blockchains could redirect the industry toward greener alternatives.
The Dual Edge of Computational Power
👉 See how computational power shapes both finance and AI — and where it might take us next.
Bitcoin isn’t the only technology straining global energy systems. Artificial intelligence (AI) is another major consumer.
Training GPT-4 required an estimated 51,000–62,000 MWh — equivalent to 50,000 average homes’ annual usage. Daily inference queries may consume around 1 GWh, or enough to power 1,000 homes for a year every single day.
Google reported a 48% increase in greenhouse gas emissions since 2019, largely due to data center expansion for AI workloads.
Both AI and Bitcoin represent massive computational demands — one driven by financial speculation and decentralization, the other by technological ambition.
They share a common foundation: computational power as currency.
Yet from an ESG (Environmental, Social, and Governance) perspective, both raise urgent questions about sustainability. Are we trading long-term planetary health for short-term innovation?
While Bitcoin pushes financial boundaries and AI chases artificial general intelligence (AGI), their shared hunger for energy reveals a critical blind spot.
Final Thoughts: Power, Progress, or Peril?
Bitcoin’s journey from fringe experiment to near-$100K asset reflects profound shifts in finance and geopolitics. But its environmental toll cannot be ignored.
With prices climbing and political support growing — especially under a deregulatory regime — Bitcoin mining is poised for explosive growth, bringing with it unprecedented energy demands.
The core keywords defining this moment are clear: Bitcoin, cryptocurrency mining, energy consumption, proof-of-work, electricity demand, carbon emissions, renewable energy, and ESG impact.
As investors celebrate gains, policymakers must confront trade-offs between innovation and sustainability.
👉 Learn how next-generation platforms are balancing crypto growth with responsible energy use.
The future of digital assets isn’t just about price charts — it’s about planetary responsibility.