As the world witnesses the meteoric rise of Bitcoin prices, the environmental impact of its mining has largely remained in the shadows. A recent research paper sheds light on the alarming consequences of Bitcoin mining on our planet, revealing a significant contribution to environmental pollution.
The process of mining a single Bitcoin, a key component in the decentralized digital currency system, demands an astonishing 330,000 kWh of electricity at the current difficulty level. This staggering energy consumption has propelled Bitcoin mining to new heights, with the industry consuming 173 terawatt-hours (TWh) during the 2020-2021 period, marking a 60% increase compared to 2018-2019. To put this into perspective, the energy consumption ranks 27th globally, surpassing entire nations like Pakistan, which boasts a population of 230 million.
However, the environmental toll doesn’t end with energy consumption. According to UNU-INWEH Reports, Bitcoin mining emitted a staggering 85.89 million metric tons of CO2 during the same timeframe, equivalent to the greenhouse gas emissions produced by burning 84 billion pounds of coal. To offset this carbon footprint, an estimated 3.9 billion trees would need to be planted, covering a land area equivalent to 7% of the Amazon rainforest or the entire country of the Netherlands.
The water footprint of Bitcoin mining is equally concerning, likened to filling approximately 660,000 Olympic-sized swimming pools. This excessive water usage mirrors the amount needed to supply domestic water to a staggering 300 million people in Africa, emphasizing the strain on global water resources.
The energy sources driving Bitcoin mining further compound the environmental impact. A significant 67% of Bitcoin mining relies on electricity sourced from fossil fuels, with coal leading the charge at 45%. Other fossil fuels, including natural gas (21%) and oil (1%), also play substantial roles in powering the energy-intensive mining operations. Surprisingly, renewable energy sources only contribute 24% to the total energy consumption, with hydropower leading at 16%, followed by wind (5%), solar (2%), and bioenergy (1%).
This revelation raises critical questions about the sustainability of the booming Bitcoin industry. As the world grapples with the urgent need to transition towards greener energy solutions, the environmental impact of Bitcoin mining serves as a stark reminder of the unintended consequences that technological advancements can bring. The industry must now confront these challenges head-on and explore sustainable alternatives to mitigate its environmental footprint. The intersection of cryptocurrency and environmental responsibility is a conversation that cannot be ignored any longer.
