Bitcoin (BTC) mining isn’t getting any better for the environment as cryptocurrency fans get ready to celebrate its 14th year in existence in early 2023. In fact, mining is only getting worse with time, according to a new study published in Nature. Researchers found that the comparison to gold is extremely misleading when it comes to the damage wrought by Bitcoin. They write that for every dollar mined in market value, 35 cents’ worth of climate damages were also generated. That puts Bitcoin more on par with beef production and gasoline burned for energy.
“As a share of gold’s market price, its climate damages average 4%; BTC’s 2016–2021 average climate damages are 8.75 times greater,” the study solemnly notes. Bitcoin’s total climate damage within that time period added up to around $12 billion globally. Researchers used the figure $100 per ton to calculate their social cost of carbon, which far exceeds the U.S.’s own estimates but is still woefully low compared to what researchers believe is the actual cost. When faced with the figure from another recent Nature study calculating the social cost of carbon as $185 per ton, that means Bitcoin’s damages add up much, much higher.
It’s no secret that Bitcoin mining has been a terrible bet for the environment for quite some time. Study after study shows that mining is only growing more environmentally damaging. CNET found that mining just one bitcoin required 1,449 kilowatt-hours to complete, “or the equivalent of approximately 50 days of power for the average US household.” So taxing on the energy grid is Bitcoin mining that the Electricity Reliability Council of Texas forced miners to cease operations during a historic heat wave this year. One company—Riot Blockchain—ended up earning more in tax credits from ceasing operations in July had it would’ve if it had continued mining Bitcoin at its usual pace.
The Verge notes that, while Bitcoin’s valuation may be far more than other cryptocurrencies, its operations lag far behind its closest rival Ethereum when it comes to implementing climate solutions instead of overburdening the planet. One expert revealed that, if Bitcoin follows in Ethereum’s footsteps and implements a simple update, “its climate damages estimated in this work, would likely become negligible.” For now, Bitcoin mining remains on track with some of the most polluting industries in the world.
“As a share of gold’s market price, its climate damages average 4%; BTC’s 2016–2021 average climate damages are 8.75 times greater,” the study solemnly notes. Bitcoin’s total climate damage within that time period added up to around $12 billion globally. Researchers used the figure $100 per ton to calculate their social cost of carbon, which far exceeds the U.S.’s own estimates but is still woefully low compared to what researchers believe is the actual cost. When faced with the figure from another recent Nature study calculating the social cost of carbon as $185 per ton, that means Bitcoin’s damages add up much, much higher.
It’s no secret that Bitcoin mining has been a terrible bet for the environment for quite some time. Study after study shows that mining is only growing more environmentally damaging. CNET found that mining just one bitcoin required 1,449 kilowatt-hours to complete, “or the equivalent of approximately 50 days of power for the average US household.” So taxing on the energy grid is Bitcoin mining that the Electricity Reliability Council of Texas forced miners to cease operations during a historic heat wave this year. One company—Riot Blockchain—ended up earning more in tax credits from ceasing operations in July had it would’ve if it had continued mining Bitcoin at its usual pace.
The Verge notes that, while Bitcoin’s valuation may be far more than other cryptocurrencies, its operations lag far behind its closest rival Ethereum when it comes to implementing climate solutions instead of overburdening the planet. One expert revealed that, if Bitcoin follows in Ethereum’s footsteps and implements a simple update, “its climate damages estimated in this work, would likely become negligible.” For now, Bitcoin mining remains on track with some of the most polluting industries in the world.