A new study concludes that greenhouse gas emissions produced by cryptocurrency mining increased after China banned the industry last year and miners lose access to hydroelectric power.
Bitcoin mining needs to be done by computers that perform complex mathematical operations to maintain the cryptocurrency network. Miners who successfully complete operations are rewarded with these virtual coins. Environmental advocates have long condemned the industry for the high energy cost associated with cryptocurrencies.. Cryptocurrency mining is accused of using as much energy as an entire country according to some studies (Norway is given as an example), and miners defend themselves by arguing that operations are often carried out using renewable energyand even promoting their development.
In accordance with a study published in the academic journal Joule“the amount of renewable energy used to power the Bitcoin network fell by more than 40% in 2020, and by as much as 25% in August 2021. Chinese miners used to use natural gas primarily, increasing the amount present in the calculation of the percentage of energy production up to 31%Although Chinese miners initially also used fossil fuels such as coal, they recently started using a type of coal with a higher concentration of CO2. Following bans by the Chinese government, these operations have now been carried out since Kazakhstan.
Last year the cryptocurrency expert Dan Held wanted to deny some accusations on the impact of mining on the environment, stating that “78% of the electricity consumption of the Bitcoin network comes from renewable energies (mainly hydroelectric)“. However, the University of Cambridge, according to other studies lowered the percentage to 39%.
It remains to be seen whether the industry is committed to moving towards a greener future after China has unplugged the mining farms.
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