Bitcoin mining, a fancy activity that requires adding data to the blockchain, has been the topic of complaints. While it’s arguably a lucrative trade for some, it impacts the local electricity grid.
Some estimates say you wish as much as 155,000 kilowatt hours (kWh) of electricity simply to mine one coin, and every transaction requires around 851 kWh, corresponding to one month’s electricity supply for a mean household within the US.
Bitcoin mining’s threat is global, with many national and native economies feeling the pinch. For instance, Tenaga Nasional Berhad, Malaysia’s national electricity provider, has reported losses of greater than 440 million Ringgit (about $101 million) because of mining-related electricity theft. This figure is on top of the reported confiscation of electrical items related to Bitcoin mining valued at $500,000.
Local Reports Say Theft Has Affected TNB For Years
A report from The Star says that Tenaga Nasional Berhad has been bleeding from Bitcoin mining-related thefts since 2020. In line with Comm Datuk Seri Mohd Shuhaily Mohd Zain, the corporate suffered from increasing losses year-on-year.
The director added that in 2020 alone, the corporate lost RM5.9 million, which increased to RM140.4 million the next yr. Then, in 2022, the losses hit RM124.9 million; in 2023, they grew to RM67.1. This yr, the losses are at RM103 million and counting.
As of today, the market cap of cryptocurrencies stood at $2.4 trillion. Chart: TradingView.com
Bitcoin Mining Continues To Impact Local Supply
TNB and the local authorities claim that the losses return to 2018 and have connection to illicit mining operations. TNB said in one other separate paper that their losses between 2018 and 2023 totaled greater than $755 million.
Although crypto mining only accounts for a small portion of Malaysia’s total consumption, it has a considerable financial impact. Apart from TNB’s losses, over $500,000 of electrical equipment linked to illicit mining operations have been confiscated.
The federal government’s seizure of those electrical items is a component of Malaysia’s campaign on tax evasion involving different parties involved with cryptocurrencies. Malaysia’s Criminal Investigation Unit plans to research the thefts and aspects contributing to the increasing loss trend.
How Does Bitcoin Mining Affect Electric Firms?
Bitcoin mining is a fancy activity that involves adding recent data to the blockchain but requires extensive power. In exchange for Bitcoin, a person or a firm must solve a fancy mathematical problem with the intention to “mine” or acquire bitcoin.
Nonetheless, experts say that this process requires a considerable amount of computational power and energy. In lots of countries like Malaysia, the requirement of a considerable electrical supply often tempts people to skirt payments and commit crimes.
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