New Scientist: Bitcoin mining carbon emissions lower than expected

New research challenges the view that Bitcoin (BTC) mining is irreconcilable with climate change. Major science and technology magazine New Scientist published a new report on November 20. The magazine notes that Susanne Kohler and Massimo Pizzol of Aalborg University in Denmark criticized earlier claims that Bitcoin's energy consumption could be as high as 63 megatons of CO2 per year. This estimate was based on the assumption that carbon emissions from electricity generation are uniform across China and that the country will continue to account for a major share of global Bitcoin mining.

New research challenges the view that Bitcoin (BTC) mining and climate change are irreconcilable. Major science and technology magazine New Scientist published a new report on November 20.

Previous research relied too much on the “blank slate” hypothesis

The magazine noted that Susanne Kohler and Massimo Pizzol of Aalborg University in Denmark criticized earlier assumptions that claimed Bitcoin’s energy consumption could be as high as 63 megatons of CO2 per year.

This estimate is based on the assumption that carbon emissions from electricity generation are uniform across China and that the country will continue to account for a major share of global bitcoin mining.

However, breaking down China’s mining landscape to account for regional disparities paints a different picture, with CO2 emissions attributable to Bitcoin mining at 17.29 million tonnes in 2018.

These disparities are reflected in the fact that coal-dependent Inner Mongolia accounts for 12.3% of Bitcoin mining, which translates to 25% of total emissions. This is offset by the reverse trend in hydropower-heavy Sichuan.

Green Energy

Kohler was quoted as saying that climate activists should continue to pay attention to the Bitcoin industry. He warned that the amount of electricity consumed to mine each new Bitcoin is increasing, but they should be cautious about this view:

“On one hand, we hear these alarmist voices saying we’re not going to make the Paris Agreement just because of Bitcoin. But on the other hand, there are a lot of voices from the Bitcoin community saying that most mining is done with green energy and has little impact on the environment.”

The researchers also noted that electricity consumption accounts for the vast majority of the coin’s carbon emissions, rather than the production and disposal of mining hardware, which accounts for only 1% of emissions.

As previously reported, other energy experts have similarly pushed back against the idea that high energy consumption is Bitcoin’s “Achilles’ heel,” advocating a shift away from energy consumption and toward where and how energy is generated.

In June, a new study found that 74.1% of Bitcoin mining is powered by renewable energy.

Source: Cointelegraph