High level bitcoin mining is threatening climate change targets

Bitcoin Mining at high level in some environmental friendly countries could end up exceeding its emissions reduction targets as a result of carbon-intensive bitcoin mining, according to a study published this week.

Some 75% of the world’s bitcoin mining is done in China, where there is cheap electricity and relatively easy access to manufacturers who make specialized hardware, according to the study. As a result, the nation’s bitcoin carbon footprint is as big as one of its ten largest cities, the paper claims.

Unlike most forms of currency — issued by a single entity like a central bank — bitcoin is based on a decentralized network and needs to be “mined.”

This takes place when bitcoin transactions, recorded on a public ledger called the blockchain, are “verified” by miners. These miners run purpose-built computers to solve complex mathematical puzzles that effectively allow a bitcoin transaction to happen; the miners then receive bitcoin as a reward.

Worldwide, bitcoin mining consumes an estimated 128.84 terrawatt-hour (Twh) per year of energy — more than entire countries such as Ukraine and Argentina, according to the Cambridge Bitcoin Electricity Consumption Index.

“The growing energy consumption and associated carbon emission of bitcoin mining could potentially undermine global sustainable efforts,”

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