Bitcoin pollution

That’s right: it generates a huge cost to the environment. Damage comparable to the damage of beef production. An analysis published in ‘Scientific Reports’ indicates that. The pollution produced by Bitcoin competes with that produced by beef, natural gas and crude oil.

In December 2021, Bitcoin had a market value of approximately $960 billion. It is known to be energy intensive. But the extent of Bitcoin’s climate damage is unclear. And how it impacts the global economy.

The pollution produced by Bitcoin is capital.
The pollution that Bitcoin produces is capital.

Great damage

Benjamin Jones and colleagues addressed the study. They indicate that Bitcoin mining used 75.4 terawatt hours per year. A higher energy use than Austria or Portugal.

Energy emissions from Bitcoin mining have increased 126-fold from 0.9 tons of emissions per coin in 2016 to 113 tons per coin in 2021. what do the calculations suggest? That each Bitcoin mined in 2021 generated $11,314 in climate damage. Total global damages in excess of $12 billion.

This was compared to pollution from other industries. Electricity, oil processing or agricultural meat production and precious metal mining. Bitcoin’s climate damages averaged 35% of its market value between 2016 and 2021. This was less than the electricity or natural gas industry. But it was more than those of beef production and gold mining. The pollution produced by bitcoin is alarming.

It will be indispensable to consider regulations for Bitcoin mining.
It will be indispensable to consider regulations for Bitcoin mining.

Changes needed

The authors conclude that Bitcoin does not meet any of the three key sustainability criteria against which they assessed it. Therefore, significant changes are required, including possible regulation. It will be the only way for Bitcoin to be sustainable.

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