A new study conducted by the United Nations, Bitcoin It has raised concerns about the possible impacts of (BTC) on the general environment.
According to the results of the study published by the United Nations University and Earth’s Future, Bitcoin is the most popular cryptocurrency unit, it carries ‘alarming impacts on climate, water and soil’ resulting from mining activities.
“The volatility in the crypto market can be compared to a gold rush. But this exciting market has a hidden dark side. “Cryptocurrency mining can have major environmental impacts on climate, water and land,” he said.
Distribution of Bitcoin Energy Consumption
The study examined the activities of 76 Bitcoin mining countries during 2020-2021. During this time, the global Bitcoin mining network consumed 173.42 Terawatt hours of electricity, ranking it 27th in the world if considered as a country, ahead of populous countries like Pakistan.
This energy consumption resulted in a carbon footprint equivalent to burning 84 billion pounds of coal or operating 190 natural gas-fired power plants.
The study also highlighted Bitcoin mining’s heavy dependence on fossil energy sources. Coal makes up 45% of Bitcoin’s energy supply mix, followed by natural gas at 21%. Although it has an impact on water resources, renewable sources such as hydroelectricity met 16% of electricity demand. Nuclear energy contributes 9%, while solar and wind energy have a share of 2% and 5% respectively.
In addition, the water footprint of BTC mining is equivalent to the amount required to fill more than 660,000 Olympic-sized swimming pools, sufficient to meet the current domestic water needs of more than 300 million people in rural sub-Saharan Africa. Additionally, the land footprint of worldwide Bitcoin mining operations during this period was 1.4 times the area of Los Angeles.
The Need for a Regulatory Framework
The researchers cautioned that the findings should not discourage the use of digital assets.
“Technological innovations are often associated with unintended consequences, and Bitcoin is no exception. <…> Our findings should not discourage the use of digital currencies. “Instead, they should encourage us to invest in regulatory interventions and technological advances that increase the efficiency of the global financial system without harming the environment.”
Koinfinans.com Interestingly, as we reported, China has significantly emerged as the largest Bitcoin mining country. In this context, it was followed by the USA, Kazakhstan, Russia, Malaysia, Canada, Germany, Iran, Ireland and Singapore.
In light of these findings, UN scientists crypto- It made a number of recommendations to governments to monitor and reduce the environmental impacts of their currencies. They also advocated investing in more energy-efficient digital currencies with less negative environmental impact.