Hello me fellow bloggers! Recently another wave of ECO FUD hit Bitcoin. Does it have any fact basis or is it just a FUD? Let’s dive in and investigate.
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Many news outlets published the news Bitcoin network surpassed another set of countries (UAE, Netherlands, Argentina) in annual electricity consumption. This raise another wave of eco FUD on crypto market. The arguments were not new. They state BTC is useless and is a waste of power. Electricity production hurts the environment and humanity needs to stop BTC network to save the planet. You can’s run BTC network on green energy and etc. Let’s investigate the situation.
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Does BTC network hurt environment?
Yes, this is an absolute truth. Crypto with proof of work algorithms are not power effective. In addition to that, production of BTC miners hurts ecology way more than actually using them. On the other hand, hash rate and electricity prices push miners to use the most effective way to power up their farms. Nobody is running a BTC farm in a place with electricity supply shortage. A good number of farms are using side energy, like on gas/oil factories in Siberia (Russia), or green energy (because of cheap price eventually). In other words, economic model of BTC pushes community to be effective in electricity consumption.
How big is carbon footprint of BTC?
There is no pint to comparing BTC emissions to countries. On the chart above, you can see the comparison BTC emissions to other tech activities. As you may see, the emissions are high. As a person who loves our beautiful planet, I can agree emissions are too high. Yet when you compare it with the rest of digital tech, you will see that it is not that much for a new global store of value. So it is bad, but not that bad to panic.
Can BTC run on green energy?
Yes, see the data below:
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As you can see, Hydro, Solar and Wind energy production is enough to power BTC network 44 times. However, BTC hash rate is rising faster than green energy production. In other words, BTC can be green, but it is really hard to achieve in a long run.
What do you think about BTC energy consumption and its side effect on ecology? Would you want BTC to be proof of stake? Do you believe Bitcoin can be fully green? Let me know in the comments below!
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Disclaimer
I’m not a financial of any kind. I encourage you to check all information yourself and make decision only based on your own opinion. All articles are created for solely entertainment purpose.
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