The Not-So-Green Truth About Bitcoin Mining

Bitcoin mining has long been the favorite punching bag of eco-warriors and graph-killers alike, but a recent study just threw a wrench into the narrative that things were getting greener post-China ban. Spoiler alert: They weren’t! Instead, it seems like it’s been more of a carbon emission celebratory parade.

The Great Mining Migration

Before the May 2021 mining ban, China was the undisputed heavyweight champion of Bitcoin mining, controlling over 60% of the global hash rate. But then, just like that friend who suddenly gets super into CrossFit and tries to drag everyone along, China tossed all those miners out of its territory.

So where did they go? To various countries, including the U.S., Russia, and Kazakhstan. Picture a global game of musical chairs, but instead of music, there’s the sweet sound of GPUs whirring and the scent of burning coal.

Carbon Footprint: More Than a Tiny Foot in the Door

A recent peer-reviewed study published in the journal Joules revealed that while Bitcoin fans were holding hands and singing about a greener future, emissions had actually increased by a staggering 17% post-migration. 65 megatons of carbon dioxide are now being belched out by this top crypto blockchain annually. Let’s just say the Bitcoin network isn’t exactly working toward a zero-carbon lifestyle.

Renewable Energy: A Diminishing Resource

One might think that the miners would embrace cleaner energy sources like renewable energies; however, they used to draw 42% of their power from renewables, and now that number has slipped to a paltry 25%. If you thought that was a plot twist, just wait. It gets better:

• Miners who had been happily harnessing hydropower have since swapped it out for natural gas—essentially trading one less-than-ideal source for another.
• Kazakhstan’s coal power isn’t exactly the crown jewel of sustainable practices either, pushing this carbon party into overdrive.

Contradictions Among Friends

In a world where Bitcoin miners are hailed as eco-saviors by some factions, another report from the Bitcoin Mining Council tried to assert that a surprising 66% of Bitcoin’s energy use was sustainable. Unfortunately, the Joules study appears to be throwing a giant, wet blanket on that parade.

Wrap-Up: The Clean-Up On Aisle Bitcoin

As it turns out, the post-ban world of Bitcoin mining is looking less environmental hero and more villain in a cape. With coal and natural gas marking their return to the mining limelight, it seems Bitcoiners may have to trade in their capes for hazmat suits. As this research shows, we might still be stuck with a complicated relationship between cryptocurrency and ecological sustainability. So, how does one mend a fence that’s fallen into the abyss? Well, that remains to be seen, but the outlook isn’t exactly optimistic.