Since the birth of Bitcoin, there has been no increase in global electricity consumption due to its mining. In 2020, the carbon emissions caused by this activity represented 0.01% of the total emissions.

Bitcoin (BTC) mining has received accusations of causing high CO2 emissions into the atmosphere and high electricity consumption. However, a recent study revealed that it would not exceed 1% of total consumption even if BTC costs more than USD 10 trillion per unit.

Bitcoin financial services company NYDIG introduced the Bitcoin Net Zero study last week. Venture capital firm Castle Island Ventures participated in it through its general partner, Nic Carter. The research analyzes the factors that relate Bitcoin to the carbon footprint and global cryptocurrency mining electricity consumption.

The report considered the growth of global electricity consumption and the role that Bitcoin plays in that process. They noted that there had been no spike in electricity consumption since the network’s inception in 2009 due to Bitcoin mining.

The Chinese government considers cryptocurrency mining to have been an energy waste since 2019. In 2021, those arguments materialized when they banned the mining and use of Bitcoin across the country. However, the Asian country has one of the highest levels of pollution in the world.

Provinces like Inner Mongolia and Xinjiang have the highest carbon emission levels in the country. Curiously, they were the first to ban and persecute cryptocurrency mining.

The study indicates that CO2 emissions to the atmosphere fell from 581 gCO2/kWh to 501 gCO2/kWh after the migration of Chinese miners. This decrease is only 12%, which is probably not directly related to the expulsion of miners.

To What Degree Bitcoin Mining Pollutes the Environment

The argument that Bitcoin mining pollutes the environment has led private companies to take a dim view of the cryptocurrency. For example, Elon Musk’s Tesla electric car company said in May that it would not accept payments in BTC due to the carbon footprint.

The Bitcoin Net Zero study seems to prove that Bitcoin does pollute but not as much as many critics state in the media.

Data from the report indicates that Bitcoin mining only accounts for 0.1% of total global emissions. On the contrary, a study by Galaxy Digital says that banks and gold production consume twice as much energy as Bitcoin.

Energy Consumption by Bitcoin Would Reach 0.4% of the Total Consumption in 2030

The study conducted by NYDIG concludes by offering an estimate of the future consumption of the Bitcoin network. It ensures that it remains to see to what extent cryptocurrency mining will reduce its carbon footprint under current conditions. It would also be necessary to consider the new types of renewable energy under development, such as geothermal energy, that El Salvador will use.

The authors predict the energy consumption by 2030, even in scenarios with a price of BTC above USD 1 trillion. They say that it would be over 0.4% of the world’s total consumption while carbon emissions would not exceed 1%.

By Willmen Blanco

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