Bitcoin has similar climate impacts to oil and livestock
New study quantifies climate damage
A new study published in Scientific Reports reveals that the damage caused to the environment by Bitcoin is comparable to other known polluting industries, namely oil and beef production. Specifically, for every $1 in Bitcoin, 35 cents worth of climate damage is produced from 2016 to 2021. Gasoline produced 41 cents in damage and meat production 33 cents.
When we compare it to gold mining, Bitcoin’s damage to the environment is about 8.75 times greater.
But what do we mean when we say climate damage? To estimate the dollar cost of future damage to the planet from climate change, the researchers used climate models to estimate the cost of each extra ton of carbon dioxide that enters the atmosphere. The Bitcoin network consumes the electricity of a small country every year. So the researchers calculated electricity consumption and the carbon dioxide emissions it produces, applying it to social costs to translate the emissions into dollars. With the social cost of carbon at $100 per ton, the climate damage amounts to $3,088 for every Bitcoin produced. From 2016 to 2021, Bitcoin’s total climate damage worldwide is $12 billion.
With the push to make cryptocurrencies greener, Bitcoin has found itself in a difficult position, especially as its closest competitor, Ethereum, received a massive upgrade that drastically reduced its energy consumption.
