Does Bitcoin mining help or hurt the environment? Blockchain experts sought an answer to that question in a newly released, first-of-its-kind academic paper on the matter. Their conclusion: It could help, with some key changes.
“Our findings show that renewable-based mining could potentially drive a net-decarbonizing effect on energy grids, although key adaptations in mining practices are needed to fully realize this potential,” reads the abstract of the paper, written by blockchain researchers Juan Ignacio Ibanez and Dr. Alexander Freier.
Published earlier this week, their analysis examined the realities of the mining industry’s carbon footprint and its potential to expand renewable energy capacity, providing a “balanced” perspective between both sides of the Bitcoin environmental debate. After just two days, the paper has amassed more views than 95% of the 24 million papers ever published on Altmetric.
BIG UPDATE: In it’s first 48 hours the #Bitcoin mining research paper is now #1 in views (6 months) and has an altmetric score of 344.
This paper is now in the top 5% of all papers ever tracked (24+ million) by altmetric 👀
Read & share the paper: https://t.co/ZkTx7bSbDB pic.twitter.com/Yt9ae4Q6Hb
— Dennis Porter (@Dennis_Porter_) August 10, 2023
Mr. Ibanez did not immediately respond to Decrypt’s request for comment.
The analysis states that a series of “unique characteristics” set miners apart from other energy buyers, helping provide “additional income and ancillary services” to renewable energy grids. Some of these characteristics include flexibility of load, interruptibility, portability, and waste heat utilization.
For example, miners can help absorb excess power generated by wind and solar facilities, helping those firms become more profitable. They also could be used to monetize stranded natural gas and landfill gas that would otherwise be flared into the atmosphere as highly pollutive methane, using containerized mining and generator solutions.
Though mining’s impact on grid management and renewable power generation is already “visible," the paper notes that it still isn’t large enough to impact the sector at large. “Should the adoption of PoW mining intensify, this scale could change,” it stated.
Some challenges on the industry’s road to decarbonization include the short-term price volatility of BTC itself –which directly impacts mining profitability – alongside external regulatory challenges. Furthermore, alternative technologies may “supplement Bitcoin mining in the process of grid decarbonization,” such as water desalination, CO2 removal, and batteries.
So far, estimates of Bitcoin’s CO2 emissions vary widely, depending on the measurements and sources used. On Wednesday, the Bitcoin Mining Council’s survey data suggested that the sector’s sustainable power mix is roughly 59.9%.
“The convergence of Bitcoin mining and RE usage demands consistent and evolving research efforts,” the report concluded.