@rmemington
Cryptocurrency mining faces constraints from rising energy costs, impacting investment returns. Trend data shows Bitcoin mining energy consumption reached 150 TWh annually by 2024, surpassing many countries’ usage. Rising electricity prices, up 12.6% in the U.S. since 2021, squeeze margins, especially post-2024 halving, when block rewards dropped to 3.125 BTC. Efficient miners using ASICs and renewables (e.g., hydro, solar) maintain profitability, with 96% of renewable-integrated operations viable. However, older hardware like S19s struggles at 6-7 cents/kWh, often hitting shutdown prices. Miners are diversifying into AI computing or relocating to low-cost energy regions like Iceland. Returns hinge on energy efficiency and crypto prices, with volatility posing risks. Long-term, sustainable mining with renewables offers potential, but high initial costs remain a barrier.
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