Environmental impact of bitcoin

rdf:langString Environmental impact of bitcoin

rdf:langString One environmental impact of bitcoin is that it worsens climate change. This is because bitcoin are made using electricity partially generated by gas-fired and coal-fired power plants. When burned coal and natural gas emit greenhouse gases which heat the Earth so changing the climate. As of 2022 such bitcoin mining is estimated to be responsible for 0.1% of world greenhouse gas emissions. A second environmental impact is the air pollution caused by coal-fired electricity generation and a third the e-waste due to the short lifetime of bitcoin mining equipment. Bitcoin is a cryptocurrency made by proof of work while some other cryptocurrencies, such as Ethereum, are made by proof of stake, which consume less electricity. As of 2022, the Cambridge Centre for Alternative Finance (CCAF) estimates that bitcoin consumes around 100 TWh annually, and says bitcoin mining uses about as much electricity as Egypt. But it is difficult to find out how the electricity used for mining was generated, and thus bitcoin's carbon footprint. One study found that from 2016 to 2021, each US dollar worth of bitcoin mined caused 35 cents worth of climate damage, comparable to the beef industry and the gasoline industry. Bitcoins annual e-waste is estimated to be over 30,000 metric tons as of 2021, which is comparable to the small IT equipment waste produced by the Netherlands. Creating one bitcoin generates 270 to 380g of e-waste. The average lifespan of bitcoin mining devices is estimated to be about 1.3 years. Unlike most computing hardware the used application-specific integrated circuits have no alternative use beyond bitcoin mining. Reducing bitcoin's environmental impact is difficult; possible remedies include making bitcoin only where or when there is excess clean electricity. Some policymakers have called for further restrictions or bans on bitcoin mining.