thecoinrepublic.com
- Beijing’s crackdown on the crypto mining business has increased Bitcoin’s carbon footprint.
- According to the survey, the percentage of renewable energy utilized to power mining activities has dropped from about 42 percent to roughly 25 percent as of last August.
Bitcoin mining has allegedly become less environmentally friendly as a result of the exodus of miners. Originating in China.
Researchers claim that, contrary to popular belief, Beijing’s crackdown on the crypto mining business has increased Bitcoin’s carbon footprint. When they left China, miners left behind its environmentally favorable hydropower and are increasingly depending on electricity provided by fossil fuels, they argue.
China ban on cryptocurrency
Although the law was changed in related businesses such as trade-in 2017, it did not intervene in mining until last spring. Following President Xi Jinping’s commitment to attaining carbon neutrality over the next four decades, the State Council resolved to crack down on the industry in May 2021. Since then, the crackdown has expanded to places such as Sichuan, where miners have access to hydropower.
Meanwhile, in Europe, countries such as Sweden, as well as authorities such as the European Securities and Markets Authority (ESMA), have lately expressed worry about the increasing usage of renewable energy for bitcoin mining. They have called for an EU-wide ban on energy-intensive mining techniques.
Why crypto mining has become a dirtier process?
According to research published in the journal Joule, cryptocurrency mining has become a dirtier process since the Chinese government has stopped bitcoin extraction in the People’s Republic. According to the survey, the percentage of renewable energy utilized to power mining activities has dropped from about 42 percent to roughly 25 percent as of last August.
Bitcoin is predicted to emit more than 65 megatons of carbon dioxide each year. The quantity exceeds the total carbon emissions of a nation like Greece, which logged fewer than 57 megatons of CO2 in 2019.
According to Bloomberg, the movement of mining businesses to other nations such as the United States and Kazakhstan has resulted in a decrease in the utilization of renewable energy sources. This made bitcoin manufacturing less environmentally beneficial since it resulted in a 17 percent rise in carbon intensity.
De Vries founded Digiconomist.net, a portal “committed to revealing the unintended effects of digital developments” that publishes the Bitcoin Electricity Consumption Index.
He is a researcher at the Vrije Universiteit Amsterdam’s School of Business and Economics, as well as an employee of the Dutch central bank. His estimations of Bitcoin’s energy consumption have been contested by crypto media and community members, but have been cited by mainstream outlets.
According to the newest paper co-authored by De Vries, migration to the United States has increased the usage of fossil fuels, particularly natural gas, because renewables account for a relatively tiny fraction of the nation’s electrical energy. Moving to Kazakhstan frequently results in the use of energy from power plants that burn “hard coal,” which pollutes more than the Chinese facilities that miners worked with outside of the rainy season.