Bitcoin To Have Negative Impact On The Environment, New Report Claims
Experts are issuing varied opinions regarding the consequences of bitcoin mining in the near future if the crypto is adopted in mass.
Is Bitcoin Mining Bad For The Environment?
Climate change experts have claimed that bitcoin might have a negative impact on the environment if we have a wider adoption of the cryptocurrency. In a report published by nature.com on Monday, bitcoin might have an impact on global warming.
The conclusion is based on data fronted by miners on bitcoin power consumption. The consumption is expected to rise considering that cryptocurrency adoption on a large scale might happen in the near future.
The reports indicate that in 2017, about 314.2 cashless payments, bitcoin had a share of 0.033%. The experts state that growth is something that comes when new technologies are adopted. They argued that in the event bitcoin follows the medium growth trend, no matter the period taken, it will have an impact on the environment.
In case the experts are right, global warming as a result of bitcoin emission will rise by 2 C within 22 years under medium growth. In the event the adoption is faster then the effect could take place within 11 years. The report holds the assumption that generators for electricity will remain fixed in future.
The experts stayed clear from projecting bitcoin’s fate, they claimed that miners might eventually move to regions that have low-cost power distribution. They stated that miners will be guided by economic logic to make this move. They proposed that for bitcoin’s effect on the environment to be mitigated, we need to have electricity decarbonization. For this to be achieved, we need to have cheaper costs of producing renewable energy as compared to fossil fuels.
In a situation where global energy cost remains relatively high, we need to have efficient hardware that does not consume a lot of power. The experts stated that we should not depend on the existing hardware. They suggest that some modifications to the current systems. One of the proposals is to add transactions on every block. Additionally, they suggest a reduction in the time spent on PoW. The researchers opine that these measures might have an effect on the power needed to mine bitcoin.
However, this report has not been received well by other energy sector experts. According to a report published two months ago, experts dismissed the focus on bitcoin’s energy consumptions. They stated that it is possible to have an increase in power production while at the same time having fewer effects on the environment.