Bitcoin's "mining" severely damages the Earth's environment

Reported by Reference News Network on November 15thAccording to the website of Discovery magazine on October 31st, mining resources on Earth can have a devastating impact on the environment, both locally and globally. Not only that, the use of extracted resources can also have catastrophic consequences for our planet, and a country relying on a single resource can seriously damage its economy. Nevertheless, many resources are what we need in our daily lives - some may be luxury goods, but others are necessities. Responsible countries and companies should stop and think about the impact of any form of mining on the Earth.

In fact, there is currently a type of mining that may be the worst for the Earth's environment: Bitcoin "mining". Yes, virtual currency mining will leave a mark on Earth. The uneven distribution of Bitcoin mining worldwide means that some countries have more severely damaged the Earth's climate and environment compared to others... All of this is just to obtain a "resource" that is far from necessary for our society.

Bitcoin mining uses a lot of computing power to solve the industry's core puzzles written in passwords. As of October 30, 2023, a single Bitcoin has a value of over $34000, and there are many other cryptocurrencies circulating in the market. Using computers to generate more cryptocurrencies is a highly profitable activity. Approximately $500 billion in the world economy revolves around these "virtual currencies".

Bitcoin miners rarely stop to think about the impact their 'mining' behavior has on the environment. Sanaz Chamanara and others published a new study in the American Geophysical Union journal 'Future of Earth', showcasing some astonishing numbers related to Bitcoin mining.

Mining equipment exhibited at the 2022 Bitcoin Conference held on April 6, 2022 in Miami Beach, Florida, USA. (Reuters)

Here are some of the most shocking data:

From 2020 to 2021, Bitcoin mining consumed more electricity than Pakistan (with a population of approximately 230 million).

These sources of electricity emit over 85 million tons of carbon dioxide into the atmosphere, equivalent to the emissions of 190 natural gas power stations or approximately 5 Yellowstone volcanic craters. This is calculated based on the actual carbon dioxide emissions of different types of power plants, and it is not even the maximum value.

If electricity comes from hydropower stations, water resources will be lost during the power generation process due to evaporation and other means, which means that Bitcoin mining consumes 1.65 cubic kilometers of fresh water.

If electricity is generated from biofuels, it requires nearly 1900 square kilometers of land to grow the grains needed for power generation.

Some countries that use the most energy for Bitcoin mining may surprise many people: Kazakhstan, Russia, Malaysia, Iran, Ireland, Singapore. This means that 45% of the energy used in Bitcoin mining comes from coal-fired power generation, which emits the most carbon dioxide.

In many ways, the Bitcoin mining competition has led some countries straight towards disaster. Iran, which was already short of water, used 19 million cubic meters of water for Bitcoin mining activities from 2020 to 2021. This is close to 20% of the annual water consumption of Iranian households (2021), all used to generate electricity for Bitcoin.

As the price of Bitcoin rises, the amount of energy people use to mine will also increase. The study by Chamanara et al. pointed out that when the price of Bitcoin suddenly quadrupled in 2021, the electricity consumption of Bitcoin mining also increased to 140% of its original level. If you live in a place where the grid load is already heavy, this type of change may easily lead to grid overload.

It is not clear who is profiting from mining through Bitcoin. Although companies, banks, and even some countries have expressed their willingness to promote the use of virtual currencies such as Bitcoin, there is currently little evidence to suggest that these stakeholders have considered how accumulating and exchanging virtual currencies can affect the environment. Adding to the ongoing (increasing) carbon dioxide emissions, population water use, and climate issues, it is puzzling why any Bitcoin mining behavior is allowed.

The final consideration is: how much we value the climate and environment of the Earth, and do we believe that the environment is more important than individuals or businesses accumulating wealth? Many economic sectors are already attempting to shift towards production methods that cause less environmental damage, while the emerging cryptocurrency market is in a retrograde trend. Cryptocurrency has always been mining and utilizing Earth's resources, no different from other methods of mining, such as digging a huge mine in a national forest reserve or drilling more oil wells in North Slope, Alaska.

Governments around the world need to make a decision on whether to regulate Bitcoin in the same way as traditional mining practices. In many countries, you cannot open a mine anywhere and must obtain a permit to assess the environmental impact of the mine before you can start mining. Perhaps it is time to establish the same rules within Bitcoin King. (Compiled by Hu Xue)

(Source: Reference message)