Why does Bitcoin pollute so much?

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Bitcoin Cryptocurrencies are notoriously bad for the environment… but is there a way to do it better?

A study called “Revisiting Bitcoin’s Carbon Footprint” shows how Bitcoin may be responsible for 65.4 megatons of carbon emissions per year, which is almost the same amount as the whole of Greece.

Bitcoin

China’s crackdown on Bitcoin mining didn’t quite match those numbers as expected, especially when it was later discovered that mining in China never stopped. Simply put, no amount of restrictions will make a difference. Bitcoin is designed to resist regulation and censorship, so even if a country bans mining, it won’t stop individuals from building mining rigs in their homes. High power consumption

The high energy demand of the mining process is not a mistake; it’s a part. Bitcoin mining is the process of verifying token transactions without the intervention of a third party. This verification process consumes a lot of energy and uses the computing power of thousands of mining machines.

This entire process used to be possible on home computers, but mining hardware has evolved since the early 2000s to create application-specific ICs, chips made just for bitcoin mining. These machines run constantly, causing a large amount of energy consumption close to that of countries such as the Netherlands or Chile. Miners buy the electricity they use, which is usually generated from fossil fuels. Burning these fuels releases greenhouse gases that warm the Earth’s climate and cause pollution that harms human health.

The problem does not end there. Competition between miners drives energy consumption, and as Bitcoin’s value rises, that competition gets worse.

By May 2021, computers on the Bitcoin mining network were making 180 quintillion guesses per second, and each BTC token was trading at $36,000 that month, before rising to $57,000 in December 2021. With incentives like that, it’s no wonder miners are constantly working to mine the next cryptocurrency.

Energy consumption – by the numbers

According to the University of Cambridge Electricity Consumption Index, in June 2022 the global Bitcoin network will require 14.34 gigawatts of electricity generation, enough to power nearly 14.4 million American homes. That’s roughly 126 terawatt hours (TWh). If we take an average of 10.6 cents per kWh, that works out to about $13.4 billion. In addition, energy consumption for mining reached a record high by the end of 2021, reaching more than 200 terawatt hours. All this does not even take into account the ecological damage caused by these activities. Right now we need to plant 284 million trees to offset the impacts of Bitcoin mining!

Negative impression

Blockchain technology and cryptocurrencies offer new opportunities for all industries, from finance and banking to media, healthcare, entertainment and e-commerce. Unfortunately, however, these alarming statistics distract from its benefits and shed light on how harmful it can be to the environment, and rightfully so.

For this reason, most of the public is hesitant to accept Web 3.0 and its components.

With the bad press that cryptocurrencies have received, good projects that are making real efforts at sustainable mining have been drowned in the noise before they had a chance. Many innovative projects, such as Cardano (created by the co-founder of Ethereum), whose Proof-of-Stake model eliminates mining, and Ripple, which will be carbon neutral in 2030, come in response to the effects of Bitcoin mining.

Among these projects is Megatech (MGT), a South African company that ensures sustainability through blockchain technology.

A better tomorrow

Climate change is no longer an issue of the future; here it is. However, it is not too late to address these concerns and transition to sustainable energy while preserving our way of life and bringing the limitless possibilities and benefits of blockchain technology and mining to individuals and businesses around the world. .

Megatech’s vision to become a leader in blockchain technology comes second to its passion for sustainability and growth. If in the process of solving one of the biggest problems plaguing our planet, they can inform users to get crypto, which is just the icing on the cake.

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