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Research Shows Bitcoin Accounts For Only 0.08% of CO2 Emitted Worldwide in 2021 - The Crypto Basic

source-logo  thecryptobasic.com 03 February 2022 05:12, UTC

A report by CoinShares shows that bitcoin mining was responsible for just 0.08% of the planet’s carbon dioxide emissions in 2021, despite the mining often touted as a major environmental villain.

According to the Coinshares report, the total emission of CO2 over the past year was 49,360 megatons (Mt). Together, the bitcoin mining operations emitted 41 Mt, an increase of almost 14% compared to the 36 Mt produced in 2020. Although significant, the number is relatively small compared to other sectors and when analyzed together with the benefits offered.

“In a global context, this is an insignificant value for the total emissions, equivalent to less than 0.08% of the total, or less than 1/1,000 of the global production of CO2. As a reference, countries with large industrial bases, such as the US and China, produced 5,830Mt and 11,580Mt, respectively,” the report says.

Coinshares expects that the CO2 emission from the Bitcoin network will begin to decrease over time: “We expect the overall carbon intensity of the Bitcoin network to continue decreasing over time because the global average of [bitcoin] miners are more mobile than traditional industries and can move to locations where cheaper renewable power plants are built, almost no matter how remote the locations.”

CoinShares further claims that new methods of utilizing renewable energy will further accelerate the reduction in CO2 emissions across the grid: “We expect bitcoin miners to start consuming large amounts of wasted flare gas, capturing the gas from the flare knock-out vessel and compressing it using liquid ring compressors. The recovered gases can then be reused within the facility’s fuel gas system, as a refinery feedstock, or for re-injection, the mining network can become carbon negative.”

To top it off, the company estimates that the scarcity of bitcoin can also favor the reduction of its environmental impact: “Currently, most of the energy is used to generate new coins, but the generation of bitcoins is programmed to decay to zero in the next 100 years. By the 2040s, over 99% of all bitcoins will have already been mined. Once the issuance of bitcoins is terminated, energy would be consumed for bitcoin transactions rather than mining.”

According to Coinshares, the Bitcoin network’s energy consumption is around about 89 terawatt-hours (TWh), well below other estimates, such as that of the University of Cambridge, which speaks of 128TWh.

In addition, the study states that renewable sources like coal and natural gas are still the two primary fuels for the production of energy used by bitcoin miners, responsible for 59% of the total energy used in the activity (the other fossil fuel is oil, with 1%).

This, however, is not exactly the fault of Bitcoin, but of the global energy matrix, still very focused on the use of fossil fuels. The shift in the power generation industry to greener sources could make bitcoin fully sustainable. The ability for miners to move to other areas should they have a need or benefit could accelerate this process.

thecryptobasic.com