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U.S. Bitcoin Mining Consumed 50 Billion kWh of Energy in 2022

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There’ve been rivers of ink written on all aspects of cryptocurrency ever since that fateful day of the Bitcoin whitepaper publishing. Still, one question that’s repeatedly brought to the limelight (and understandably so) surrounds energetic and environmental sustainability. Now, the White House itself is adding fuel to the fire through its DAME Tax proposal, whose aim is, and we quote: “making cryptominers pay for costs they impose on others.” 

How, you ask? By phasing in an additional 30% tax penalty for cryptocurrency mining firms on any energy they consume in that process. According to the White House, this is “an example of the President’s commitment to addressing both long-standing national challenges as well as emerging risks – in this case, the economic and environmental costs of current practices for mining crypto assets.” The idea is simple: Bitcoin mining consumes a lot of power; this consumption drives electricity prices up; which is bad for everyone unfortunate enough to share a grid with a cryptocurrency mining firm.

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