A new report from the Energy Information Agency (EIA) estimates that large-scale cryptocurrency mining consumes 2% of the country’s electricity.
While some small-scale crypto mining occurs on home computers, the bulk of cryptocurrency mining takes place on a large scale, sucking up an increasing amount of electricity in the process.
According to the EIA, crypto mining is growing across the U.S. following a crackdown in China that has forced many mining operations to relocate.
A separate report from the Cambridge Center for Alternative Finance estimates that the U.S. is now home to nearly 40% of %Bitcoin ($BTC) mining operations, up from just 3% in 2020.
The amount of electricity being used by crypto miners is now equivalent to all of the electricity used in the State of Washington.
The administration of U.S. President Joe Biden has responded to the current situation by proposing the Digital Asset Mining Energy (DAME) excise tax, which would levy a tax on %Cryptocurrency miners equal to 30% of the cost of the electricity they use.
However, the proposal from the White House has draw pushback from the U.S. Chamber of Digital Commerce, which is calling on lawmakers to focus less on penalizing miners and more on collaborating with the industry.
The price of Bitcoin is currently at $42,800 U.S., up 88% over the last 12 months.