Mining our planet’s resources can have devastating environmental consequences, both locally and globally. Even beyond that, the use of the resource could result in catastrophic Harmful effects on our planet and dependence on a single resource can wreak havoc on a country’s economy. Yet many of these resources are necessary for our daily lives – sometimes as a luxury, sometimes as a necessity. Any responsible country or company should always pause to think about the impact mining of any kind can have on the planet.
It turns out that one type of mining these days might be the worst for Earth’s environment: bitcoins. Yes, virtual currency “mining” leaves its mark on our planet. The uneven distribution of Bitcoin mining across the world means that some countries have a much greater impact on the planet’s climate and environment than others… all for a much larger ‘resource’ bigger than others. Since necessary for our society.
Bitcoin mining uses a lot of computing power to solve the cryptographic puzzles at its core Of the industry. Starting today (October 30, 2023), each Bitcoin is worth over $34,000 and with the multitude of other cryptocurrencies available, using computers to unlock more can be a profitable business. Nearly half a trillion dollars of the global economy is based on these “virtual currencies”.
What is the environmental impact of Bitcoin mining?
Rarely do people who mine Bitcoin stop to think about the environmental impact of “mining” them. A new study by Sanaz Chamanara and others in Earth’s Futurea newspaper of American Geophysical Unionpresents some of the surprising numbers coming from Bitcoin mining.
Here are some of the most striking:
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In 2020-21, Bitcoin mining consumed more electrical energy than Pakistan (population: 230 million).
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The sources of this electrical energy released on 85 megatons of carbon dioxide. This is equivalent to 190 natural gas power plants or ~5 Yellowstone calderas. This is based on the actual carbon dioxide emitted by the different generation styles, so it is not a maximum value.
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If your energy comes from hydroelectricity, water loss through evaporation and other means led to Bitcoin mining consuming 1.65 cubic kilometers of fresh water. This is more than the domestic water consumption of more than 330 million people in rural areas of sub-Saharan Africa.
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If your energy comes from biofuels, you need to almost 1,900 square kilometers of land to produce source crops. It’s bigger than the state of Rhode Island.
The biggest culprit of energy The uses for Bitcoin mining are not shocking: China and the United States. However, some of the other top ten power users are more of a surprise to users. a lot people: Kazakhstan, Russia, Malaysia, Iran, Ireland, Singapore. This means that 45% of all energy used to extract Bitcoins come from the worst carbon dioxide emitted for energy production, coal.
In many ways, the race for Bitcoin mining superiority has caused some countries to head straight into calamity. Iran, an already water-strapped country, used over 19 million cubic meters of water for Bitcoin mining in 2020-2021. It is almost 20% of the country’s domestic water consumption per year (in 2021), all intended for the production of energy for Bitcoins.
As the price of Bitcoins increases, so does the power used to mine them. As Chamanara and others point out, when Bitcoin prices soared 400% in 2021, power consumption from Bitcoin mining also soared 140%. If you live somewhere with an already taxed electricity grid, this type of change could easily use that grid overboard.
Is Bitcoin mining worth it?
Who exactly benefits Bitcoin mining is unclear. Although companies, banks and even some countries say they want develop the use of Bitcoins and related virtual currencies, so far there is little evidence that they have examined the impact of collecting and trading these coins on the environment. Add to this the impact that the pursuit (And increasing) carbon dioxide emissions and water consumption of populations and our climate, You I wonder why Bitcoin mining is allowed.
This is what it really boils down to: to what extent do we value our planet’s climate and environment over the accumulation of personal or corporate wealth? Many sectors of our economy have attempted to shift to much less destructive modes, but emerging cryptocurrency markets are doing just the opposite. Instead, they have exploited the planet’s resources in the same way as putting a massive strip mine in a national forest or drill for even more oil on Alaska’s North Slope.
It is up to governments around the world to decide whether it is necessary to regulate Bitcoins like they regulate all traditional mining activities. You cannot open your own mine in many countries without permission and an assessment of the impact the mine will have. Perhaps it is high time to install the same guardrails in the Bitcoin domain.
