According to a recent report, Bitcoin acts more like "digital crude" than "digital gold" in terms of climate impact. The report attempts to evaluate the energy-related climate damage caused by PoW Bitcoin mining.
With a recent report raising concerns about its energy consumption and environmental effect.
On September 29, experts at the University of New Mexico's Department of Economics released the latest report on Bitcoin's climatic impact. According to the report, Bitcoin acts more like "digital crude" than "digital gold" in terms of climate impact.
The report attempts to evaluate the energy-related climate damage caused by PoW Bitcoin mining and compares it to other industries. It claims that between 2016 and 2021, each $1 in BTC market value created was liable for $0.35 in global climate damages.”
The experts conclude that the findings highlight a number of red flags for any industry considered to be sustainable. They also argue that upgrading to proof-of-stake is unlikely to make the Bitcoin network sustainable.
“If the industry does not shift away from POW or move towards POS, this class of digitally rare products may need to be regulated. However, a delay will most certainly result in increased global climate damage.”
After the Merge, Lachlan Feeney, the founder and CEO of Australian-based blockchain development consultancy Labrys, stated that the pressure is on Bitcoin to justify the PoW mechanism in the long run.
However, there are always counter-comparisons and debates. According to the University of Cambridge, the Bitcoin network currently consumes 94 terawatt hours (TWh) every year. To put this in context, all of the refrigerators in the United States alone consume 104 TWh per year, which is more than the whole BTC network.
Furthermore, transmission and distribution electricity losses in the United States alone amount to 206 TWh per year, enough to power the Bitcoin network 2.2 times. Cambridge also claims that the Bitcoin network's power consumption has dropped by 28% since mid-June. This is most likely due to miner capitulation during the bear market and the adoption of more efficient mining gear.
There's also the argument that more mining is being done with renewable energy, particularly in the United States, which has witnessed an infusion of mining companies since China's ban.
Earlier this month, former MicroStrategy CEO Michael Saylor slammed 'misinformation and propaganda' over the Bitcoin network's energy usage. He stated that metrics reveal that about 60% of the energy utilized in BTC mining originates from sustainable sources and that energy efficiency has improved by 46% year on year.
COINGABBAR VIEWS: The environmental impact of cryptocurrency mining might be reduced by adopting renewable energy sources, which burn fewer fossil fuels. Green energy is the future, and more and more businesses and individuals are adopting it. As per a Bitcoin mining council report, 58.5% of the network has already moved to clean energy due to both environmental and political pressure.
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