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Bitcoin mining: Eco-villain or sustainable solution?

The carbon impact of mining bans might surprise you—studies find unintended environmental effects

Saci EliasProfile
By Saci EliasNov. 5th - 2pm
3 min read
A Bitcoin mining machine
Could Bitcoin mining actually help reduce methane emissions? New research explores an unexpected solution. Photo: Wikimedia Commons / Mirko Tobias Schafer
 

Bitcoin mining has become as notorious for its environmental impact as it has for its financial promise. As the pioneering cryptocurrency, Bitcoin has long been known for its resilience and potential, establishing itself firmly in the financial landscape.

However, there is a long-standing debate surrounding Bitcoin mining—the process through which new BTC are generated—and its sustainability and environmental impact. While some argue that Bitcoin mining could hold sustainable significance, many studies and prominent figures have highlighted its negative environmental effects.

In fact, a 2022 report from the White House revealed that the energy demands of Bitcoin exceed the combined energy usage of all other cryptocurrencies. The report noted that as of August 2022, Bitcoin accounted for an estimated 60% to 77% of the global electricity usage among crypto assets.

Digging deeper into Bitcoin mining's environmental footprint, the United Nations University (UNU) issued a press release in 2023 emphasizing that Bitcoin mining worldwide largely relies on fossil fuels, resulting in adverse effects on land, water, and the carbon footprint. These findings were included in the UNU’s study The Environmental Footprint of Bitcoin Mining Across the Globe: Call for Urgent Action.

Professor Kaveh Madani, Director at the United Nations University Institute for Water, Environment, and Health, led the study and clarified in a press release that these findings “should not discourage the use of digital currencies.” Rather, they must “encourage us to invest in regulatory interventions and technological advancements that improve the efficiency of the global financial system without harming the environment”.

Positive environmental impact

Yet, while Bitcoin mining poses environmental challenges, others have also explored its potential benefits.

For instance, Forbes recently reported that Bitcoin mining could play a role in reducing methane emissions. Several businesses are looking into capturing methane from landfills and converting it into electricity, which can then be used for Bitcoin mining. This process could serve dual purposes, reducing emissions while turning idle energy into digital gold. 

Additionally, while some countries—such as China—have banned Bitcoin mining for environmental reasons, a new study suggests that these bans could sometimes be counterproductive.

The Exponential Science Foundation’s report, The Unintended Carbon Consequences of Bitcoin Mining Bans: A Paradox in Environmental Policy, suggests that prohibitions can actually drive miners to relocate to regions with fossil-fuel-dependent power grids, potentially worsening carbon emissions.

According to CoinDesk, the report indicates that bans in Europe and America might increase emissions, whereas bans in Kazakhstan could be more effective in combating them.

Nikhil Vadgama, co-founder of Exponential Science, noted that the study emphasizes the need for science-based regulations.

A 2024 study also highlighted Bitcoin mining's potential as a sustainable economic model for mitigating methane emissions. Titled An Integrated Landfill-Gas-to-Energy and Bitcoin Mining Model, it suggests that energy-efficient, modern mining rigs could increase profitability while mitigating environmental damage.

Dennis Porter, one of the study’s proponents and CEO of the Satoshi Action Fund, shared in an X post that the study “highlights the ability for BTC mining to utilize methane from landfills,” adding that methane is “28 times more potent for warming than carbon dioxide.”

Porter further emphasized that methane mitigation could lead to positive outcomes for the environment.

Calls for sustainable action

Some Bitcoin miners are also taking steps toward sustainable practices. For example, Green Mining DAO leverages decentralization, profitability, and sustainability in its mining operations. Recognizing the environmental issues associated with traditional mining, the organization uses renewable energy to power its activities, reducing its carbon footprint.

According to its official website, “this sustainable approach not only reduces environmental impact but also lowers energy costs, enhancing the profitability of mining operations.”

Furthermore, Green Mining DAO operates as a decentralized autonomous organization (DAO), enabling community-driven decision-making. Beyond environmental benefits, this model also promotes inclusivity and transparency in governance.

While Bitcoin mining has sparked legitimate environmental concerns, these various approaches illustrate that the issue is not black and white. As the industry continues to evolve, there may be further opportunities for balancing technological progress with environmental responsibility.

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