Presently, the power-consuming challenges of crypto mining is drawing major criticism from several parts of the world. Bitcoin mining contributed only 0.8 percent of world’s total carbon dioxide (CO2) emissions in a year, a new study by research platform CoinShares has revealed. The study claims that the global Bitcoin mining network emitted 42 megatons (Mt) of CO2 in 2021, which is said to be an insignificant figure.
In order to narrow down the comparison, the report quoted the amount of carbon contributions that were recorded from China and the US.
“As a frame of reference, countries with large industrial bases such as the United States and China emitted 5,830Mt and 11,580Mt of CO2 in 2016, respectively,” CoinShares claimed.
The findings come at a time nations such as India, Russia, and the US are analysing the crypto sector from all angles, in order to bring in regulatory frameworks.
To mine or generate a Bitcoin, complex proof-of-work algorithms require to be solved on advanced computers. These machines require to be always plugged into electrical sources, due to which the mining process consumes loads of electricity. This nature of Bitcoin mining has linked the process to potential heavy carbon emitters.
About 60 percent 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 percent.
The observations from CoinShares further argued that while crypto mining is being scrutinised for carbon emissions, nothing is being said about the CO2 amounts generated in the production of traditional valuable goods.
“Estimates of the emissions caused by minting and printing fiat currencies come in around 8Mt per year and the gold industry is estimated to generate between 100 and 145Mt of CO2 emissions annually,” it noted.
A “rounding error” is what Saylor called BTC mining’s carbon emissions while speaking at the Bitcoin Mining Council’s (BMC) quarterly briefing last month.
The entrepreneur has also defended Bitcoins against Elon Musk, who has revoked BTC adoption citing environmental concerns.
Yesterday I was pleased to host a meeting between @elonmusk & the leading Bitcoin miners in North America. The miners have agreed to form the Bitcoin Mining Council to promote energy usage transparency & accelerate sustainability initiatives worldwide. https://t.co/EHgLZ9zvDK
— Michael Saylor⚡️ (@saylor) May 24, 2021