Globally, Bitcoin’s power consumption has dire implications for climate change and achieving the goals of the Paris Accord because it translates into an estimated 22 to 22.9 million metric tons of CO2 emissions each year—equivalent to the CO2 emissions from the energy use of 2.6 to 2.7 billion homes for one year. One study warned that Bitcoin could push global warming beyond 2°C. Another estimated that bitcoin mining in China alone could generate 130 million metric tons of CO2 by 2024. With more mining moving to the U.S. and other countries, however, this amount could grow even larger unless more renewable energy is used.
https://news.climate.columbia.edu/2021/09/20/bitcoins-impacts-on-climate-and-the-environmentBitcoin isn’t getting greener: four environmental myths about cryptocurrency debunked
Myth one: bitcoin mining is becoming more efficient
Bitcoin’s carbon emissions are not the network’s only dirty secret. In 2011, competing miners could win the bitcoin bingo with an average laptop. Today, viable operations require investing in warehouses filled with specialised hardware known as Application Specific Integrated Circuits (ASIC). As the majority of mining costs come from energy to run these units, bitcoin miners are always careful to use the cheapest. To avoid wasting energy, the global arms race for bitcoin requires ASICs to be replaced for newer and more efficient models every year.
ASICs can’t be easily repurposed for general computing. Redundant units create around 11,500 tonnes of hazardous electronic waste each year, much of which is dumped on cities in the global south.
Myth two: bitcoin encourages investment in clean energy
Chinese hydroelectric power plants are popular spots for bitcoin mining. While China cracks down on the industry, 61% of bitcoin mining is powered by fossil fuels.
Cheap coal in Australia has found new buyers through bitcoin, as formerly redundant coal mines are reopened to power mining. Miners are willing to move anywhere for residual energy, increasing the profitability of natural gas in Siberia and supporting oil drilling in Texas.
In Virunga National Park in the Democratic Republic of Congo, bitcoin miners are getting special access to cheap, clean energy produced by an EU-funded hydroelectric plant. The plant was designed to help locals find livelihoods beyond poaching and stop them resorting to scouring parkland for wood fuel. Bitcoin miners employ armies of computer servers, not the ex-combatants the plant could help.
Myth three: bitcoin replaces the need for gold mining
Gold mining is one of the world’s most destructive industries. Bitcoin was originally intended as a digital replacement for gold that was also a deflationary means of exchange, capable of rendering wasteful banks and regulators redundant.
But for many institutional investors, gold is being bought to hedge against bitcoin’s volatility. Tesla poured US$1.5 billion into bitcoin, but also declared an interest in gold. While bitcoin is currently experiencing all-time price highs, gold hit one of its own in 2020.
Nor has bitcoin displaced traditional finance institutions. Major banks are vying to get very rich indeed on the back of it.
Myth four: corporate players will boost market for ‘green bitcoin’
Some argue that institutional investors can turn bitcoin green. Yves Bennaim, the founder of Swiss cryptocurrency think tank 2B4CH, claims that as investors like Tesla push prices up, “there will be more incentive to make investments in renewable sources of energy” for bitcoin mining. But miners will always use the cheapest option to maximise returns. It’s not possible to allocate additional rewards to miners using renewables, because it’s difficult to know exactly which bitcoin miners use renewables.
Unfortunately, there is currently no such thing as a “green bitcoin”.
Not all cryptocurrencies are as energy-intensive as bitcoin, though. There are alternatives to proof-of-work. The second biggest blockchain project, ethereum, is switching to proof-of-stake, a new system which is supposed to remove the need for data miners and perpetual hardware updates.
https://theconversation.com/bitcoin-isnt-getting-greener-four-environmental-myths-about-cryptocurrency-debunked-155329
