Summary:
Bitcoin mining consumes 155-172 terawatt-hours of electricity annually, accounting for 0.4% of global energy demand.
96 million tonnes of CO2 emissions per year, comparable to a quarter of France's emissions.
Renewable energy share in Bitcoin mining fell from 41.6% to 25.1% post-2021 relocation.
Scientists are calling for urgent action to mitigate Bitcoin's environmental impact.
Potential solutions include transparency, regulation, and the adoption of greener blockchain protocols.
As Bitcoin continues to soar, reaching over $100,000 recently, the environmental impact of its mining practices has come under intense scrutiny.
What's happening?
Bitcoin mining consumes between 155-172 terawatt-hours of electricity per year, which is about 0.4% of global energy demand. This staggering consumption leads to approximately 96 million tonnes of carbon dioxide emissions annually, equivalent to a quarter of France's total emissions.
Jean-Paul Delahaye, a mathematician from Université de Lille, states, "The protocol used for bitcoin has a very high energy cost; it's an environmental waste."
Why is this important?
The industry's water consumption is equally alarming, consuming hundreds of billions of liters of water and occupying around 1,870 square kilometers of land. Following a significant relocation from China to Kazakhstan and the United States in 2021, the share of renewable energy used in Bitcoin mining has plummeted from 41.6% to 25.1%. With Bitcoin's rising price, energy consumption is expected to increase, exacerbating its carbon footprint.
Scientists are warning about the urgent need for action to mitigate these environmental impacts.
What's being done about bitcoin mining?
To reduce its environmental footprint, the Bitcoin industry could embrace transparency and regulation, develop energy-efficient cryptocurrencies, and adopt greener blockchain protocols. For instance, Ethereum has recently achieved a 99.95% reduction in energy usage through its transition to a proof of stake model.
Community pushback is also growing against mining operations that contradict local climate initiatives. In Memphis, Tennessee, residents are opposing a mining facility that conflicts with the city’s Climate Action Plan, while in Fort Worth, Texas, lawsuits have been filed due to alleged noise pollution from mining activities.
Some utility companies are taking proactive measures, utilizing excess renewable energy to power Bitcoin mining operations, showcasing a potential path toward more sustainable practices in the industry.
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