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© Reuters. Bill Ackman raises concerns about record energy consumption by Bitcoin miners
Bitcoin miners, recovering from the cryptocurrency’s recent downturn, are pouring billions into new equipment and setting energy consumption records as a software update for the largest cryptocurrency looms that could impact their revenue streams.
According to TheMinerMag’s analysis of public documents, the 13 largest mining companies have spent over $1 billion on high-tech mining hardware since February 2023. CleanSpark (NASDAQ:) and Riot Platforms (NASDAQ:) are at the top, with approximately $473 million and $415 million invested, respectively.
These investments aim to increase operational efficiency and secure low-cost electricity, a crucial factor given the energy-intensive nature of mining, which requires blockchain transactions to be verified to earn Bitcoin.
However, it has simultaneously increased the industry’s electricity consumption, which reached a record 19.6 gigawatts last month, up from 12.1 gigawatts a year earlier, as estimated by Coin Metrics. This electricity consumption is enough to power approximately 3.8 million homes in Texas, where a significant number of these mining facilities are located.
These statistics sparked discussions across social media platforms, with American billionaire and hedge fund manager Bill Ackman also commenting on the issue.
“A scenario: The rise in Bitcoin price leads to increased mining and higher energy consumption, which drives up energy costs, which leads to an increase in inflation and a fall in the dollar, which increases demand for Bitcoin and increased mining, the demand for energy increases and the cycle continues.” “Ackman wrote in an X post.
“Bitcoin is going to infinity, energy prices are skyrocketing and the economy is collapsing. Maybe I should buy some Bitcoin,” he added.
This increased activity in the crypto sector is being driven by a significant increase in Bitcoin value, driven by the launch of spot Bitcoin exchange-traded funds (ETFs) and anticipation of the April halving.
After a 64% decline in 2022 due to various crises in the crypto industry, BTC has quadrupled in value since then.
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