[Student IDEAS] by Thomas Zantman - Global BBA at ESSEC Business School

Abstract

When we delve into the topic of the ecological impact of Bitcoin, it becomes apparent that contradictory information abounds. The goal, therefore, is to understand the true ecological impact of Bitcoin. This article, though quite comprehensive, invites reflection but is not exhaustive. Feel free to explore some of the lines of thought mentioned below on your own, using the sources contained in the bibliography for guidance. This article is not investment advice.

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The question of the ecological impact of the Bitcoin network really began to be questioned in the public press in 2017, the year Bitcoin reached a historic price of $19,783.21 on December 17, 2017. In 2018, an article published by the University of Hawaii_¹ already stated that “its cumulative emissions will be enough to warm the planet above 2°C in just 22 years”. Debates quieted during the “bear market” period (2018-2020), when the blockchain was much less used. It then saw a new spike in visibility during the bull run of 2021 which led to the creation of the Crypto Climate Accord aiming to “achieve net-zero emissions from electricity consumption for CCA Signatories by 2030”². From that year on, the ecological impact of bitcoin mining farms became a central issue in the debate on Bitcoin. The number of articles increased, with an average negative view supported by significant reports from organizations like Greenpeace and the UNU (United Nations University). However, a stream of thought advocates the positive effects of mining on the climate. It has for example been suggested by Daniel Batten, a co-founder of Auckland-based CH4 Capital (a company dedicated to combating methane emissions through Bitcoin mining) that Bitcoin mining could potentially prevent up to 0.15°C of global warming³.

Definitions Blockchain: A decentralized digital ledger that securely records transactions across multiple computers, ensuring data integrity and security through its distributed nature. Proof of Work (PoW): A consensus mechanism used by certain blockchain networks to validate transactions and create new blocks (A data unit that records and permanently stores transactions made on the network). It requires participants to solve complex computational puzzles, thereby securing the network and preventing fraudulent activities. Proof of Stake (PoS): is a consensus mechanism used by certain blockchain networks to validate transactions and create new blocks. Unlike Proof of Work, it does not require solving complex computational puzzles. In PoS, the right to validate transactions is allocated to participants based on the number of coins they hold and are willing to "stake". Mining Farm: A dedicated facility equipped with a collection of specialized hardware, known as mining rigs, designed to perform the intensive computations required for validating transactions on a blockchain. ASICs: Short for Application-Specific Integrated Circuits, these are highly specialized hardware devices engineered specifically for mining cryptocurrencies, such as Bitcoin. ASICs boast superior computational efficiency and energy effectiveness compared to general-purpose mining systems, making them a staple in professional mining operations. E-Waste: Refers to discarded electronic and electrical equipment, including but not limited to computers, smartphones, and mining hardware. This waste category is notable for containing potentially harmful substances and represents a growing environmental concern as the turnover rate of electronic devices increases. Bitcoin (BTC): A pioneering decentralized cryptocurrency that operates on a peer-to-peer network. It eliminates the need for central authorities or intermediaries by using blockchain technology for transaction recording and network security. Bitcoin miners use powerful computers or ASICs to solve complex puzzles in the PoW process, contributing to the network's security and earning bitcoins as a reward for their efforts.

Bitcoin Mining

The goal of Bitcoin mining is to be the first to find the "key" (hash) of the current block of transactions. The first to find it wins all the rewards, which are in Bitcoins. Currently, mining a block takes about 10 minutes and yields 6.25 BTC (376,438.53 USD on the first of May 2024). Given its price, it's understandable why so many people are seeking to mine. To mine, it suffices to have computing power (often ASICs) and use the SHA-256 algorithm. In the Bitcoin blockchain, a block consists of two parts: its header, where the block's data (version, previous hash, date, etc.) is recorded, and a ledger where all the transactions are listed. At this point, there are two choices: mine solo or join a mining pool. If one mines solo, then winning means earning the 6.25 BTC. However, the chances of winning are slim. On average, people choose what are called mining pools, meaning the person offers their computing power to the pool and in exchange, the gains are distributed evenly among all members of the pool if it succeeds in finding the correct hash. At the end of the day, miners within mining pools are profitable despite the randomness of rewards because the energy spent is sufficient for their pool to find the hash enough times and reward them each time. If it were not profitable, they would stop.

Table 1: Main Bitcoin mining pools as October 1, 2024⁴

Name	Expected % over 100 blocks*	Hashrate**
Foundry USA	33.29	196.48 EH/s
Antpool	27.98	174 EH/s
ViaBTC	14.49	90.43 EH/s
F2Pool	10.88	66.02 EH/s
Binance Pool	7.59	46.49 EH/s
SpiderPool	3.22	20.43 EH/s

The Importance of the Bitcoin Network and Its Mining Farms

It's important to note that, according to what Mary K. Pratt – a freelance journalist with a focus on covering enterprise IT, cybersecurity management and strategy, and a Bachelor of Science at Boston University – wrote in TechTarget: "Bitcoin accounted for 60% to 77% of total global crypto-asset electricity use as of 2022 [... ]. The second highest user, the Ethereum network, accounted for 20% to 39%”⁵. It should also be mentioned that since the Ethereum update in September 2023, this network has successfully transitioned from Proof of Work (PoW) to Proof of Stake (PoS). The more Ethereum one stakes, the higher the chances of being selected to create a block and thus earn the reward. This new system has reduced its carbon footprint by 99.99%⁶. Therefore, studying the Bitcoin network almost equates to studying the entire energy impact of cryptocurrencies due to its still significant dominance in 2024. A brief focus on Bitcoin mining farms is needed as it is a subject frequently studied and documented. Mining farms are spaces where a great deal of computing power is concentrated. Generally, these companies have enough power to operate stably and profitably outside of mining pools. To conduct their activities, they use numerous ASICs which require significant electrical consumption and cooling systems to function, see Table 2 (where The "country" column is interesting because it clearly shows the current dominance of the United States in BTC mining).

Table 2: Some of the biggest mining farms in 2023⁷

Name	Market Cap June 2024	Revenues 2023	Earnings 2023	Total Assets March 2024	Country
Marathon Digital	$5.72 B	$0.38 B	$0.28 B	$2.95 B	USA
CleanSpark	$4.16 B	$0.21 B	-$70.88 M	$1.53 B	USA
Phoenix Group UAE	$2.96 B	Data not available	Data not available	Data not available	UAE
Riot Blockchain	$3.14 B	$0.28 B	-$54.57 M	$2.61 B	USA
Cipher Mining	$1.58 B	$0.12 B	-$22.21 M	$0.67 B	USA

The Utility of Bitcoin

If one thinks Bitcoin is useless, then it's a waste to consume resources for it. Let's therefore look at some points that demonstrate the utility of Bitcoin, noting that this list is not exhaustive:

• It solves the Byzantine Generals' Problem, which highlights the challenge of achieving a reliable agreement in a network where some participants may be dishonest or faulty. This issue is illustrated by the scenario of generals who must unanimously decide whether to attack or retreat while dealing with potential traitors among them. Bitcoin addresses this challenge through a Proof-of-Work consensus mechanism, where miners expend computational power to validate transactions, ensuring consensus is reached even in the presence of potentially untrustworthy nodes.
• Unlike fiat currencies, Bitcoin operates on a decentralized system without a central authority. This means that no government or financial institution controls its issuance or circulation. This characteristic is particularly attractive in countries where trust in financial institutions is low or during financial crises.
• One does not need permission to use one’s Bitcoin; one can manage one’s money as they wish. This allows for things currently impossible even in the West, like sending 10k to Iran, for example. This argument holds more value in countries with dictatorial power.
• Bitcoin can be used anonymously. Those who claim they have nothing to hide, especially regarding the use of their money, should consider the importance of the principle of private freedom, particularly in the democratic Western mindset. This can also be beneficial for whistleblowers (I'm thinking here of Edward Snowden, who often speaks about Bitcoin).
• Blockchain technology allows all transactions to be recorded transparently and securely. This ensures transaction integrity and reduces the possibility of fraud.
• It only requires an internet connection to use it, or an alternative form of network, making the currency extremely practical to use. If internet access is made difficult, there are already solutions like Mesh Network (which can relay information to an internet access point, this can be done with Bluetooth for example). If there is no internet access, it is possible to use one's bitcoins through SMS, but this is only possible if the other person has internet access to communicate it to the Bitcoin network.
• For many people in developed countries, inflation is not perceived as a major issue. However, the situation is different in other parts of the world. For instance, in sub-Saharan Africa, Bitcoin is sometimes seen as an alternative store of value. This perception is partly due to the volatility of local currencies and the search for ways to preserve value. However, it's important to note that this approach carries significant risks, as Bitcoin's value is subject to regular and substantial fluctuations, making its use as a store of value highly speculative.

Negative Impact on the Planet

During my research, I was really surprised by the lack of data from the press. It seemed that as soon as a report came out, journalists simply reproduced the figures, without doing any investigative work and this might be explained by the complexity of the subject. Most articles seem to be essentially cloned. I started to look into this subject shortly after the report of the  United Nations University¹⁰ (UNU) was released on October 24, 2023, so I was flooded with the same data. I also think of the New York Times report¹¹ released on September 3, 2021, or the Scientific Reports¹² on September 29, 2022. Moreover, apart from scientific articles, the data transcribed by journalists were often "vague"; there could be missing elements preventing us to fully understand all the stakes. I advize the reader to do the test and type keywords like "Bitcoin beef consumption", which recalls the scandal on September 29, 2022. The result is clear (and this should also work in your native language)¹³. The study aimed to assess the climate damages caused by Bitcoin between 2016 and 2021. Here is the controversial statement: "[...] on average, each $1 in BTC market value created was responsible for $0.35 in global climate damages, which as a share of market value is in the range between beef production and crude oil burned as gasoline, and an order-of-magnitude higher than wind and solar power." 

It is now time to turn to the latest major report, which is from the UNU.

Impact of electricity. To operate an ASIC, electricity is required. In the early days of Bitcoin, when the network was just being built and was not widely used, this electricity consumption was "negligible." With the price of Bitcoin having increased by approximately 40,000% over the past decade (albeit with numerous fluctuations) and becoming increasingly desirable to own, many people have begun mining, thus increasing electricity consumption and the difficulty of mining. It is important to know that every 2016 block, the mining difficulty is adjusted to maintain an average block validation time of 10 minutes. Additionally, Bitcoin is mined all over the world, and this electricity can be "dirty" in the sense that it may depend on the use of fossil fuels, for example. According to the UNU report, coal accounts for 45% of Bitcoin's energy supply mix¹⁴.

This is why, starting in 2017, reports began to sound the alarm about the consumption of the Bitcoin network, which at that time was around 30.25 TWh (terawatt hours of electricity). This figure has increased significantly because, according to the UNU report, combining the years 2020 and 2021, the Bitcoin network would have consumed 173.42 TWh¹⁵ (86.71 per year). To put it into perspective, if Bitcoin were a country, it would be the 27th largest consumer in the world¹⁶. In 2021, this would place it between Malaysia and Sweden, which had GDPs of $373.83 billion and $639.71 billion, respectively, according to data.worldbank.org¹⁷. Regarding Bitcoin, it’s difficult to estimate its value because of its volatility. The market capitalization was around 540 billion at its lowest and 1.1 trillion at its peak.

Impact of water. Our world is governed by physical laws, and according to the Joule effect, all this electricity expenditure also produces a certain amount of heat. Moreover, by the law of conservation of energy, this energy can neither be created nor destroyed. The goal of mining farms and all ASIC holders is to maximize the conversion of this electricity into computational work and to minimize heat production as much as possible. However, I have not been able to find reliable data on a ratio of 100% electrical energy = x% of computational work heat production. In a mining farm that includes hundreds or even thousands of ASICs, it is necessary to find a way to reduce the heat produced, such as using water. The UNU report states that "660,000 Olympic-sized swimming pools" were used over two years. Alternative sources have calculated this to correspond to 1.65 km³. To give an order of magnitude, the report then explains that this is "enough to meet the current domestic water needs of more than 300 million people in rural sub-Saharan Africa."

Amount of emitted CO2. This can vary according to the energy mix of the Bitcoin network. The UNU study states that, in addition to the 45% coal used, 67% of total consumption are fossil fuels. As a result, a significant amount of CO2 is emitted in the creation of this electricity, which will be used to mine Bitcoin blocks. It is estimated at 85.89 Mt of CO2eq (85.89 million tons of CO2 equivalent). The report adds that: "To offset this footprint, 3.9 billion trees should be planted, covering an area almost equal to the area of the Netherlands, Switzerland, or Denmark or 7% of the Amazon rainforest"¹⁸.

Problem of e-waste. As mentioned in the definition, ASICs are electronic circuits. Therefore, if they are not reused, dismantled, or recycled, they will likely become e-waste. The market for Bitcoin mining hardware is growing with a CAGR of 12.6% between 2022 and 2031 to reach $1.7 billion¹⁹. As rational decision-makers, the goal of Bitcoin miners is to possess the greatest computing power while maximizing their profit. If it is in their profit interest to consume more, they will not hesitate to do so. Just as with the general electronics market, which is affected by Moore's law, more powerful ASICs are released each year. However, if more powerful ASICs are released, it means that the mining difficulty increases and to stay competitive, it might be economically more profitable to buy new ones. In reality, investment in new mining machines is highly correlated with the price of Bitcoin. When the market is in a bearish phase, it is not interesting to invest as explained by Technavio: "Hence, a decline in the value of cryptocurrencies will negatively affect the profit margins or cause losses for small miners, which will prevent them from investing in new ASIC hardware solutions"²⁰ However, as this new bull run approaches, investors are preparing by purchasing new equipment as shown by Galaxy: "Bitcoin’s fourth halving is approaching next year, and miners are actively taking measures to prepare by either pursuing mergers & acquisitions, diversifying their business outside of mining, or upgrading their mining fleet with new generation machines"²¹. A Bitcoin halving is an event that halves the rate at which new Bitcoins are created. The UNU report does not mention this topic, however a statistic that often appears on the Internet from 2021 is that Bitcoin would produce 30,700 tonnes of e-waste annually²². By comparison, the World Economic Forum published an article in January 2019 stating: "Each year, approximately 50 million tonnes of electronic and electrical waste (e-waste) are produced[...]"²³.

When this data is presented, one might wonder what could possibly be the positive impact of Bitcoin on the environment.

Issues with This Study

While I was conducting research to assess this article, an analysis²⁴ was published in February 2024 detailing all its issues point by point. It was authored by Margot Paez, a Doctor of Philosophy (PhD) in Civil Engineering from the Georgia Institute of Technology. The article was published by the Bitcoin Policy Institute, a non-profit organization. Their funding comes from donations, and it is stated on their website that the funds “will solely be used in alignment with its mission and will not support political candidates or their committees.” They describe themselves as “A think tank studying the future of money.” It is noticeable that a significant part of their article discusses Bitcoin, and they are favorable towards this technology.

The UNU research paper primarily relies on just two studies: Digiconomist²⁵ and Bitcoin emissions alone could push global warming above 2°C (Mora et al²⁶). This lack of source diversity can lead to a bias. Moreover, these studies were quickly criticized for their lack of transparency and unrealistic assumptions. Notably, Mora et al. had claimed that Bitcoin's impact would increase global temperatures by 2 degrees Celsius over 30 years. As for Digiconomist, their methodology failed to fully adhere to one of the top ten best practices for modeling Bitcoin's electricity consumption and completely failed 40% of best practices according to this paper. There is also data from the Cambridge Center for Alternative Finance (CCAF) that should be taken with caution as they have since revised their system for calculating Bitcoin's electricity consumption. In August 2023, CCAF's new calculation system reduced the estimated electricity consumption of Bitcoin mining by 25% from their previous study²⁷.

Figure 1 : Total annualized network power draw by mining country (Twh) - Techopedia²⁸

Furthermore, the choice of evaluation period in the study leads to overstating the impact of Bitcoin. Their 2023 study specifically targets the most active period for cryptocurrencies known as the bull run, here referring to the 2020-2021 period. It's important to understand that every four years, there is a Bitcoin halving which cuts the mining reward in half. This has always been a period of market euphoria, associated with significant network usage. However, they chose to end their study precisely at a key moment in 2021, which is the "China ban" in May. At that time, the government of Xi Jinping decided to ban cryptocurrencies in the country along with a large portion of the miners. It is noted that China continued mining on a smaller scale but in a greener manner afterward²⁹. This situation caused three changes: the price of Bitcoin crashed suddenly, the use of the Bitcoin network decreased and the energy mix immediately became much greener. Indeed, during this period, China was the leading mining power in the world, accounting for about 50% of the total Bitcoin hashrate.

Moreover, a majority of Chinese miners used coal as their energy source, which kept the energy mix of the Bitcoin network above 30% fossil fuel usage. The "China ban" has considerably improved the overall energy mix of the Bitcoin network. It's also worth noting that similar shifts occurred in other countries dependent on fossil fuels, like Iran in May 2021³⁰, which had an energy mix composed of 70.7% natural gas, 27.9% oil, 0.5% coal, and 0.3% nuclear in 2021³¹. This was also the case in Kazakhstan, and each time it had a positive impact on Bitcoin's energy mix. Between June 2021 and June 2023, the energy mix of Bitcoin shifted from 37% to 52.6% renewable energy³².

Figure 2 : Bitcoin Energy Sources on the 30 March 2023 -  batcoinz³³

Additionally, beyond the errors regarding sources as previously discussed with the CCAF, there are also mistakes related to the terminology used. For instance, it is stated: “The global crypto market cap is currently about $0.5 trillion (CoinMarketCap, 2023), with BTC being the main shareholder with about $525 billion as of March 2023.” Without revisiting the debate on Bitcoin’s market cap, which was near its lowest when the report was published in October 2023, while in August, September, and October 2023, it was around 600, 590, and 605 billion respectively, BTC is not a "main shareholder." Bitcoin is a decentralized currency, not an entity with shareholders.Finally, in an effort to better clarify the data, many comparisons have been made. However, it is somewhat a system of "choosing one's battles." For example, according to KPMG³⁴, the Bitcoin network also uses as much electrical energy as clothes dryers worldwide.

Notwithstanding the limitations of the UNU study, it is very complicated to correctly assess  the "actual" figures. As explained by the U.S. Energy Information Administration (EIA): “Varied facility sizes, a paucity of data on operations, and shifts in facility location and ownership add complexity to the creation of a statistically representative sample of cryptocurrency miners”³⁵.

Daniel Batten's Arguments on Reducing Temperature

Now that we have seen the environmental harm of the Bitcoin network highlighted in various scientific and media articles, it is important to understand why some observers claim it actually has positive environmental implications. We will explore the link between mining farms and renewable energies, how they can limit flaring, as well as other ecological applications. These concepts have largely been shared by Daniel Batten, who describes himself on LinkedIn as a "Climatetech Investor | Advisor | Bitcoin Analyst" and holds a positive view of Bitcoin”³⁶.

Bitcoin, a Boon for Renewable Energies? Renewable energies are crucial for energy transition. However, there are still many challenges to overcome before they can be fully relied upon. For instance, they may depend on wind speed or topographical location for wind energy, and weather conditions for solar energy. This situation means that many industries cannot fully utilize renewable energies, which also slows investments and growth in this sector. This is because industries that require a lot of electrical energy are highly vulnerable in case of a power outage. Examples include the steel industry or ore processing (significant material damage), chemical, oil, and gas industries (safety risks), healthcare services, food industry, water, and sanitation (human cost). Even industries like automotive, which are less impacted, depend on this energy. If we cut the electricity in a car factory, this can cause production stoppages, supply chain disruptions, impacts on quality, waste, and financial losses.

Bitcoin mining farms could be an asset for renewable energies, as no industry is as flexible as this one. They rely on electrical energy to operate, thus creating an almost unlimited daily demand. The limit being the profitability of mining, or in a world that depends 100% on Bitcoin, if all electricity stopped and all batteries were empty, which would create an interruption in bitcoin production. Moreover, they can shut down instantly without any issues, so even if the wind stops blowing, there is no risk to safety or otherwise. This situation is currently possible thanks to agreements between large mining farms and the renewable energy industries. This revolution could enable the development of renewable energies, which have found an interesting source of return on investment in Bitcoin.
A side note on the opportunity cost of this energy. The location of renewable energies is often crucial for achieving better yields, such as topography for wind energies (being located on flat lands or at the tops of hills) or the location of falls for hydraulic energy. Some energy parks are almost inaccessible to many industries often due to a lack of infrastructure to move electricity and create energy surpluses. However, these energy surpluses are often a problem and generally sell at a discount, which interests mining farms. For instance, BigBlock Datacenter³⁷ located in Kazakhstan or Congo mines next to a dam and a hydroelectric plant. Mining in this way, in addition to making infrastructure for renewable energies profitable, is also mostly green in terms of electrical energy. Note, it is not necessarily interesting to have a very powerful internet connection, but it is essential to ensure its stability in order to send hashes to the network as explained in the video: "Our Bitcoin Mining Farm in Iceland: We Tell You Everything!" by Mr. TK: Bitcoin and Crypto³⁸. Additionally, agreements like the "demand response" are in place where Bitcoin mining farms must shut down if necessary to allow energy for other industries in exchange for financial compensation.

A Solution to Flaring?  Flaring is a phenomenon that might not always be covered in the media but is destructive to the planet. It consists of burning natural gas that cannot be processed or sold. This method is often used in oil and gas facilities for technical reasons (lack of gas transport or processing infrastructure), safety (to reduce pressure or limit explosion risk), or economic reasons (cost of treatment or lack of demand). The World Bank estimates that 144 billion cubic meters (bcm) of natural gas were flared in 2021³⁹. This natural gas, when burned, produces CO2 emissions, methane, and black soot. Unsurprisingly, it's extremely harmful to both health and the environment. To put it in perspective, these 144 bcm correspond to 400 million tonnes of equivalent carbon dioxide (CO2) emissions. For comparison, France consumed 604 million tonnes of CO2 equivalent in 2021.

Moreover, being destructive to the environment, the issue also comes from how to end flaring. While progress has been made in many areas concerning the environment, the problem of flaring remains almost stagnant.

Figure 3 : Gas Flaring, Millions m³/year -  World bank⁴⁰

As seen on Figure 3, the reduction in flaring each year is only about 1 to 2%. Even though the trend is gradually decreasing over the years, the progress is still slow, and we should explore solutions to accelerate it. 

This is where Bitcoin mining farms can play a role. Gas is flared because it finds no buyer due to poor location and lack of transportation means. However, mining farms, being easy to move and consuming electricity directly, are very interested in this low-cost gas. Initially, miners could even be paid to use this gas. Although it would be preferable for farms to operate solely on renewable energies, the ecological impact is significant because it prevents the release of methane into the air. As long as these facilities exist, a solution must be found to use this surplus gas to prevent flaring. It should be noted that this phenomenon is global, but the largest emitters are Iraq, Venezuela, Russia, and Iran, according to the World Bank. In Venezuela, a very hot country, this process could have a neutral environmental impact because it would require cooling the machines in return. For Iran and Iraq, it would require operating only eight months a year, as temperatures would also be too high, creating a neutral impact situation similar to Venezuela. For now, the phenomenon is mostly present in the United States with companies like Crusoe Energy Systems, but projects have emerged in more remote regions, such as Siberia. Indeed, Gazprom’s subsidiary, Gazpromneft, has partnered with a company like Vekus to mine near its oil drilling sites⁴¹.

The Future Intersection of the Bitcoin Network and the Environment

Here is a quote that introduces the UNU report: "Our findings should not discourage the use of digital currencies. Instead, they should encourage us to invest in regulatory interventions and technological advancements that improve the efficiency of the global financial system without harming the environment." Like many new technologies in their early stages, the Bitcoin network is still inefficiently optimized. It is evident in our surroundings that Bitcoin has not yet fully found its place in our world, especially in developed countries where it primarily serves as a speculative instrument. Nonetheless, the Bitcoin network and its mining farms are evolving, transforming, and gradually integrating into our societies. Solutions like the Lightning Network, which enables instantaneous, low-cost transactions, and Taproot, aimed at enhancing transaction privacy and flexibility through Schnorr signatures, are under development. Some regulations have already been ratified, such as the FATF (Financial Action Task Force), FinCEN in the USA, Regulation SCA (Securities and Commodities Authority) in the UAE, Japan's Payment Services Act, MAS (Monetary Authority of Singapore), or MiCA (Markets in Crypto-Assets) in Europe. Currently, countries are mainly focusing on the financial aspect (money laundering), security (anti-terrorism), and consumer protection. Hopefully, a law regarding the environment will emerge in the coming years, especially in the United States, which hosts the largest mining farms in the world.

Even if there's a long way to improve the ecological impact, the ecosystem might have understood this issue and taken it into consideration. There have been notable improvements in the energy mix of Bitcoin in recent years, with an ever-increasing curve. Furthermore, it is interesting to note that innovation in ASICs maintains a stable level of energy consumption despite the increasing mining difficulty, as you can see in the graph below. The red curve indicates the energy consumed for mining Bitcoin, and the blue curve represents the mining difficulty.

Figure 4 : Bitcoin mining energy consumption indicator - Dune⁴²

I hope this article has been clear and that the reader will find it interesting and informative. Feel free to delve deeper into the topic, and as they say in the world of cryptos: DYOR (Do Your Own Research).

References

1. Bitcoin can push global warming above 2 degrees C in a couple decades. (2018, October 18). ScienceDaily. https://www.sciencedaily.com/releases/2018/10/181029130951.htm
2. Accord - Crypto climate Accord. (2021, août 6). Crypto Climate Accord. https://cryptoclimate.org/accord/
3. Batten, D. (2023, July 5). Bitcoin mining can prevent climate change. Bitcoin Magazine - Bitcoin News, Articles And Expert Insights. https://bitcoinmagazine.com/business/bitcoin-mining-can-prevent-climate-change#:~:text=It%20turns%20out%20that%20Bitcoin,on%20how%20Bitcoin%20helps%20later
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6. Hayward, A. (2022b, September 15). Ethereum energy usage, carbon footprint down 99.99% after merge : report. Decrypt. https://decrypt.co/109848/ethereum-energy-carbon-footprint-down-99-percent-merge
7. Largest Bitcoin miners by market capitalization. (n. d.). https://companiesmarketcap.com/bitcoin-mining/largest-bitcoin-mining-companies-by-marketcap/
8. X.com. (n. d.). X (Formerly Twitter). https://x.com/Snowden/status/1759304612664779247?s=20
9. Chainalysis Report : Bitcoin adoption in Sub-Saharan Africa is the highest in the world. (n. d.). https://www.fanews.co.za/article/cryptocurrencies-blockchain/1407/general/1408/chainalysis-report-bitcoin-adoption-in-sub-saharan-africa-is-the-highest-in-the-world/37946
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13. The examples used are based on a selection of articles from different sources: iflscience, newsweek, scitechdaily, techxplore, dailymail, thehill, forbes, independent, abc, interestingengineering, theverge, smithsonianmag, theswaddle, sciencealert, popular science, extremetech, theregister, onegreenplanet
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15. Sermondadaz, S. (2017, November 29). La crypto-monnaie Bitcoin consomme plus d’électricité que 159 États dans le monde. Sciences et Avenir. https://www.sciencesetavenir.fr/high-tech/la-crypto-monnaie-bitcoin-consomme-plus-d-electricite-que-159-etats-dans-le-monde_118729
16. UN Study Reveals the Hidden Environmental Impacts of Bitcoin : Carbon is Not the Only Harmful By-product. (2024c, April 21). United Nations University. https://unu.edu/press-release/un-study-reveals-hidden-environmental-impacts-bitcoin-carbon-not-only-harmful-product
17. World Bank Open Data. (n. d.). World Bank Open Data. https://data.worldbank.org/
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