The environmental reputation of Bitcoin has taken quite a mend lately, with multiple assertions pointing towards the cryptocurrency’s potentially beneficial role in tackling climate change. A recent report by Christian Stoll, Lena Klaaßen, Ulrich Gallersdörfer and Alexander Neumüller, sheds an undeniably optimistic light on this side of the coin. However, not to be swayed entirely, we must maintain an equilibrium in our approach towards understanding the full scope of Bitcoin’s environmental impact.
A small correction course for those harbouring grandioso ambitions; Bitcoin mining is not going to miraculously save the planet nor single-handedly combat global warming. In fact, CBECI estimates highlight that Bitcoin mining contributes to merely 0.14% of total global emissions, an infinitely small portion of the broader greenhouse gas emissions scenario. Preponderantly, a ban on the same wouldn’t suffice to prevent earth’s temperature from spiralling over 1.5 degrees Celsius in the next decade, especially considering our continued reliance on fossil fuels.
Realistically speaking, Bitcoin mining cannot alone bolster the surging growth of renewable energy or help achieve our decarbonization targets. Regionally varying network dynamics further complicate its potential role as a possible catalyst for renewable energy. Contrary to many assumptions, it’s far from likely that Bitcoin miners will successfully set up operations on wasted gas sites such as landfills, abandoned wells, or oil and gas fields. Several energy startups attempting to mine with wasted methane are struggling to find their footing in the constrictive profit margins of the cryptocurrency market.
That said, it would be unfair to undermine the role of Bitcoin mining in promoting sustainable development. Agile and modular, Bitcoin mining is contributing to renewable energy projects and minimizing stress on electrical grids during extreme weather situations. Certain mining companies have even begun monetization of their waste heat through sales to greenhouses as well as usage in municipal heating systems.
Notably, Bitcoin miners are playing some part in mitigating methane emissions in the oil and gas industry. These miners are also striving to establish a viable business case for landfill and agricultural waste gases. Pressed by narrowing profit margins, there’s a chance that mining revenue might eventually morph into a subsidiary factor in a broader energy operation.
Bitcoin was not brought into being to be the primary warrior in the fight against climate change. Its paramount value in this battle will not stem from its mining operations, but from its intrinsic purpose. Climate change, with its consequent effects on food production, water resources, and infrastructure, shake societal stability. In such tumultuous times, Bitcoin could hold the fort by preserving economic liberty and upholding human rights, a narrative that has much to commend itself.
Source: Coindesk
