Bitcoin mining has consumed enough electricity last year to emit carbon emissions equivalent to those of Estonia, according to a study suggesting that the impact of cryptocurrency on climate change is not as bad as previously thought.
Previous research has suggested that emissions from mining bitcoin - where computing power is used to solve mathematical problems to create a new currency - could reach 63 megatonnes of CO2 per year. Some researchers have even claimed that cryptocurrency alone could break global climate goals.
Susanne Köhler and Massimo Pizzol of Aalborg University in Denmark found that previous estimates had made general assumptions that carbon emissions from electricity generation were uniform throughout China, where they estimated that just over half of all bitcoin extraction activities take place.
But reducing emissions in China to a more regional level has had the effect of drastically reducing the global footprint of 17 million tonnes of CO2 by 2018, while Inner Mongolia, which is rich in coal, accounted for only 12.3% of the production of bitcoins, but only a quarter of total emissions. The opposite effect was observed in China's Sichuan province, which is rich in hydropower plants.
Researchers have also found that it is to a very large extent the bitcoin mining's electricity consumption that contributes to the carbon emissions of the cryptocurrency, not the production and disposal of used computers. in mining, which accounted for only 1% of emissions.
Mr Köhler said the results did not mean that we could stop worrying about bitcoin - especially since the new bitcoin electricity consumption is increasing - but we should put it in perspective. "On the one hand, we have alarmist voices saying that we will not reach the Paris agreement because of bitcoin alone. But on the other hand, many voices in the Bitcoin community say that most mining activities are done with green energy and they do not have a big impact, "she says.
Better control of Bitcoin's carbon footprint will remain difficult until we have more accurate data on mining locations - information that Köhler and Pizzol say are rare today.
Camilo Mora of the University of Hawaii, who did not participate in the work, said the results show the need for greater transparency on the location and equipment used in bitcoin extraction. Although the new estimate of the cryptocurrency's contribution to climate is smaller, it is hard to believe that the impacts of mining are insignificant, as many countries, including China, are considering regulating this activity. because of its high electricity consumption.
Previous research has suggested that emissions from mining bitcoin - where computing power is used to solve mathematical problems to create a new currency - could reach 63 megatonnes of CO2 per year. Some researchers have even claimed that cryptocurrency alone could break global climate goals.
Susanne Köhler and Massimo Pizzol of Aalborg University in Denmark found that previous estimates had made general assumptions that carbon emissions from electricity generation were uniform throughout China, where they estimated that just over half of all bitcoin extraction activities take place.
But reducing emissions in China to a more regional level has had the effect of drastically reducing the global footprint of 17 million tonnes of CO2 by 2018, while Inner Mongolia, which is rich in coal, accounted for only 12.3% of the production of bitcoins, but only a quarter of total emissions. The opposite effect was observed in China's Sichuan province, which is rich in hydropower plants.
Researchers have also found that it is to a very large extent the bitcoin mining's electricity consumption that contributes to the carbon emissions of the cryptocurrency, not the production and disposal of used computers. in mining, which accounted for only 1% of emissions.
Mr Köhler said the results did not mean that we could stop worrying about bitcoin - especially since the new bitcoin electricity consumption is increasing - but we should put it in perspective. "On the one hand, we have alarmist voices saying that we will not reach the Paris agreement because of bitcoin alone. But on the other hand, many voices in the Bitcoin community say that most mining activities are done with green energy and they do not have a big impact, "she says.
Better control of Bitcoin's carbon footprint will remain difficult until we have more accurate data on mining locations - information that Köhler and Pizzol say are rare today.
Camilo Mora of the University of Hawaii, who did not participate in the work, said the results show the need for greater transparency on the location and equipment used in bitcoin extraction. Although the new estimate of the cryptocurrency's contribution to climate is smaller, it is hard to believe that the impacts of mining are insignificant, as many countries, including China, are considering regulating this activity. because of its high electricity consumption.
