Researchers claim that Bitcoin’s climate impacts are more like “digital crude” than gold
It seems that the Bitcoin (BTC) demonization continues to rage on even during an economic downturn, with further research looking into its use of energy and environmental impact.
The most recent paper from researchers from the economic department at the University of New Mexico was released in September. 29th asserts that, from a perspective of climate damage, Bitcoin operates more like “digital crude” than “digital gold.”
The study attempts to determine the climate-related energy damage caused by proof of work Bitcoin mining, and also to make comparisons with other sectors. It claims that from 2016 to 2021 an average of the dollar in BTC market value is responsible for $0.35 globally in “climate damages,” adding:
“Which as a share of market value is in the range between beef production and crude oil burned as gasoline, and an order-of-magnitude higher than wind and solar power.”
They conclude the results constitute “a set of red flags for any consideration as a sustainable sector,” concluding that it’s highly likely for the Bitcoin network can be sustained by switching to proof of stake.
“If the industry doesn’t shift its production path away from POW, or move towards POS, then this class of digitally scarce goods may need to be regulated, and delay will likely lead to increasing global climate damages.”
Recently, Lachlan Feeney, the director of Labrys, the founder and CEO, has spoken out. Australia-based blockchain development company Labrys stated to Asian trade following the Merge that “the pressure is on” Bitcoin to justify the PoW system in the long-term.
There are always counter arguments and arguments, but. It is reported that the University of Cambridge currently reports that the Bitcoin network consumes at present the equivalent of 94 terawatts (TWh) annually. To put this in context it is that all the refrigeration units in the United States alone consume more than the total BTC network, which is 100 TWh annually.
In addition, distribution and transmission electric power loss in the U.S. alone are 206 TWh annually, which is enough to be used to power Bitcoin Bitcoin system 2.2 times more. Cambridge also states that Bitcoin network’s power requirements have declined by 28% from the middle of June. This could be due to miner capitulations in the bear market, and newer and more efficient mining hardware that is being used.
In related news: Nic Carter takes aim at the claims Bitcoin can be a cause of environmental catastrophe
There’s also the argument that more mining is done using renewable energy sources, particularly those in the U.S. which has seen an increase in mining companies following China’s ban.
In the last month the earlier this month, former MicroStrategy Chief Executive Officer Michael Saylor slammed ‘misinformation and propagandism’ about the use of energy by BTC. Bitcoin network. He pointed out that the metrics indicate that nearly 60% of the energy required for BTC mining is sourced from environmentally friendly sources, and the efficiency of energy has improved by 46% year over year.
Texas is now an important mining destination in recent times, is an instance where renewable energy reigns — it’s the biggest producer of wind energy across the United States. A number of mining operations have been established to make use of the energy that is not being used, or to use it for other purposes like gas flaring. This past August, Asian Trade announced that the use of sustainable energy in BTC mining has increased more than 60% over the course of a year. So it’s not all negative and depressing.
