According to digital investing firm CoinShares, the Bitcoin (BTC) mining network contributed less than 0.08 percent of the world’s total carbon dioxide (CO2) emissions. According to data gathered by the company, BTC mining contributes only a small portion of worldwide CO2 emissions, especially when compared to the wide range of services made possible by the cryptocurrency’s use.
Bitcoin Mining Carbon Emission Insignificant
In a recent analysis released on Monday, CoinShares calculated that the Bitcoin (BTC) mining network emitted 42 megatons, or Mt, of carbon dioxide, or CO2, in 2021 (1Mt = 1 million tons).
The Bitcoin mining network is expected to emit 36 million tons of CO2 in 2020, up from 41 million tons last year. According to the study, flare mitigation may remove an estimated 2.1 million tons of CO2 equivalents from the market, bringing BTC mining’s total net emissions to around 39 million tons per year.
Source: Coinshares
However, according to CoinShares, the BTC mining network creates a negligible share of overall emissions, accounting for less than 0.08 percent of the total.
The report read:
“As a frame of reference, countries with large industrial bases such as the United States and China emitted 5,830 Mt and 11,580 Mt CO2e in 2016, respectively.”
The overall electricity usage of the Bitcoin network is estimated to be 89 terawatt-hours (TWh) in the report, which is far less than estimations made by institutions such as the University of Cambridge. This is especially true now that the hash rate of the Bitcoin network has reached fresh all-time highs. However, electricity usage alone does not provide a comprehensive picture of the Bitcoin network’s environmental impact. This is because worldwide CO2 emissions are caused by a variety of factors, including, for example, private automobiles.
Related article | Digging Into The Data Of Bitcoin Mining Decentralization
Furthermore, as evidenced by CoinShares’ numbers, the carbon footprint of BTC mining pales in comparison to that of a number of traditional businesses that emit substantially more CO2.
“Estimates of the emissions caused by minting and printing fiat currencies come in around 8 Mt per year and the gold industry is estimated to generate between 100 and 145 Mt of CO2 emissions annually,” according to the study.
BTC|USD trades at $38k. Source: TradingView
When seen in the long run and in perspective, Bitcoin’s emission costs are “dwarfed by its benefits,” according to the firm:
“At 0.08 % of global CO2 emissions, removing the entire mining network from global demand—and thereby depriving hundreds of millions of people of their only hope for a fair and accessible form of money—would not amount to anything more than a rounding error.”
The analysis offers light on a growing debate over Bitcoin mining’s environmental impact. Influencers like Elon Musk, for example, have already revoked their adoption of Bitcoin for corporate use due to energy concerns. According to the CoinShares analysis, about 60% of Bitcoin mining activity is powered by fossil fuels, which is on the low end of industry estimates, with some putting the figure as low as 25%. If the report’s assertions are correct, however, Bitcoin’s overall environmental impact will be minor on a global scale.
Report Similar To Previous Argument On Bitcoin Mining
The findings of the study back up a recent comment by MicroStrategy CEO Michael Saylor, who noted that the total amount of energy used for BTC mining was “insignificant.” Saylor, speaking at the Bitcoin Mining Council’s (BMC) quarterly briefing, said that the amount of energy Bitcoin uses is “a rounding error” in other big businesses and “negligible” when compared to overall global energy usage.
Global BTC mining utilizes 3.2% of the electrical system energy wasted or lost in the United States in a year, according to figures compiled by the BMC last month. According to the council, BTC mining consumes 0.142% of the world’s total energy, while over 59% of miners use sustainable energy.
The analysis offers light on a growing debate over Bitcoin mining’s environmental impact. Influencers like Elon Musk, for example, have already revoked their adoption of Bitcoin for corporate use due to energy concerns. According to the CoinShares analysis, about 60% of Bitcoin mining activity is powered by fossil fuels, which is on the low end of industry estimates, with some putting the figure as low as 25%. If the report’s assertions are correct, however, Bitcoin’s overall environmental impact will be minor on a global scale.
Related article | New Survey Shows Bitcoin Mining Has Become Credible
Featured Image from Pixabay | Charts by Coinshares, and TradingView