Bitcoin’s Carbon Footprint Drops, But...

D

espite the amount of greenhouse gases emitted from Bitcoin mining this year, it still consumes more power than some countries. In fact, bitcoin creation creates a similar amount of emissions as countries such as Nepal and the Central African Republic

Cryptocurrencies, such as Bitcoin, are created by computer processors that solve complex mathematical equation sets. The process requires significant computational power and energy output.

The most popular cryptocurrency is actually harming the environment more than people realize. According to an analysis by the Cambridge Centre for Alternative Finance (CCAF), this currency emits 48.35 million tonnes of carbon dioxide equivalent (MtCO2e) into the atmosphere each year, which equates to 0.10% of global greenhouse gas emissions total.

The CCAF has developed a tool to estimate Bitcoin’s environmental footprint on a day-to-day basis. Alexander Neumueller, Digital Assets CBECI Project Lead at CCAF, said: “As more people become aware of Bitcoin’s electricity consumption and its potential environmental impact, we felt it was important to develop a way to measure this impact on a daily basis.”

The tool's estimate for the share of sustainable energy sources in Bitcoin's electricity mix is 37.6% (26.3% renewables and 11.3%), which significantly lower than industry estimates suggest (59%).

Many people are concerned about the environmental impacts of Bitcoin, as its electricity consumption is growing rapidly.

Chris

An editor at Coincrop

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Chris is a Coincrop staff writer based in the UK, covering the best rates for cryptocurrency earning and borrowing products. When not at work, he's likely assembling lego models.