Bitcoin Network Hits Record Power Usage

Yolowire 16-Sep-2024 9:48 AM

Power usage among %Bitcoin (CRYPTO: BTC) miners is at an all-time high, levels that many analysts say are unsustainable.

Network hash rates among companies and individuals mining for Bitcoin around the world is at an all-time high.

Crypto miners’ complete complex mathematical problems using banks of computers to unlock Bitcoin and other %Cryptocurrencies. Hash rates refer to the collective computing power of all miners on the Bitcoin network.

With the hash rate on the Bitcoin network at an all-time high, so too is the amount of energy being used by cryptocurrency miners.

Analysts say there have never been more cryptocurrency miners online, and that they are using more collective energy than at any time in the past.

At the same time, data shows that it has never been more difficult to make money from cryptocurrency mining than it is following a Bitcoin halving event this spring.

In April, Bitcoin underwent its latest halving, which reduces the available supply of the cryptocurrency, and the rewards for mining it, by 50%.

Investment bank %Jefferies (NYSE:JEF) has issued a report stating that crypto mining was “significantly less profitable” in August this year, with revenues declining an average of 12% from July.

Jeffries analysts note that more people and powerful machines are fighting for smaller cryptocurrency rewards.

As a result, stocks of crypto miners are cratering. The share price of %MarathonDigital (NASDAQ:MARA) is

down 30% on the year, while %RiotPlatforms (NASDAQ:RIOT) stock has fallen 53% year to date.

With energy costs to mine Bitcoin and other crypto marching higher, mining companies are turning to alternative options including small nuclear reactors, as well as exploring the use of artificial intelligence (A.I.), to help with their operations.