Contrary to the popular belief that Bitcoin has a huge environmental impact, a new study from the Aalborg University in Denmark shows that as the overall hashrate increases, the environmental footprint is expected to decrease.
Bitcoin consumed around 31.29 TWh in 2018 and left a carbon footprint of only 17.29 MtCO2-eq. The idea that Bitcoin is doing a lot of damage has been pushed around quite often but seems to not be true.
The new improvements in Bitcoin mining equipment have been great for the energy consumption of miners. According to Coinshares, around 77% of Bitcoin mining is actually powered by renewable energy.
There are numerous studies out there showing that cash could be far worse than Bitcoin for the environment. In fact, anything could be as bad or worse, even sending emails or watching Youtube all night. All those activities can be bad for the environment.
Bitcoin mining definitely consumes a lot of electricity but is that really that bad? Bitcoin mining means that people will use underutilized energy resources. Bitcoin can revive an industrial ghost town and create value thanks to mining.
It’s also important to remember that the total energy usage of Bitcoin will always be limited by the price of it. Miners will only keep mining when they profit from it. Bitcoin has a built-in limit on energy use because the network automatically adjusts the difficulty of mining new blocks. Additionally, Bitcoin rewards are halved every 4 years.