Anyone who has tried to buy a high-end video card in the last few years knows first-hand one of the side effects of Bitcoin mining; the cost has skyrocketed because these cards are a core component of Bitcoin mines. But there are other costs, mostly related to the huge amounts of electricity used by these facilities.
The New York Times has a long and detailed investigative report* that looks at the 34 largest Bitcoin mines in the United States. In total, they use almost 4 gigawatts of power (which is more than that created by the Pickering Nuclear Generating Station near where I live), most of which is generated by fossil fuel plants.
The mine has 33 employees and uses nearly 10 times as much electricity as all the homes in the 16,000-person town. It is one of three mines in the state that together consume nearly as much power as every home in North Dakota.
Few other states have been as welcoming to Bitcoin companies. In October 2021, Gov. Doug Burgum presented an economic development award to local officials and a power provider for bringing a mine to Grand Forks. Months later, he announced the development of a $1.9 billion Bitcoin operation in Williston. And last spring, he flipped a switch at the Jamestown mine’s ribbon-cutting ceremony.
The Bitcoin operations’ effect on the state’s economy is simple, said Josh Teigen, the commerce commissioner: “They are propping up our fossil fuel industry, and that’s exactly what we want.”
I knew that Bitcoin mining used a lot of power, but until I read this article, I had no idea of the scale of these operations.
* Gifted article-no paywall
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