According to Digiconomist’s Bitcoin Energy Consumption Index, Bitcoin has such an impact on the environment (118.9TWh/year) considering the huge amount of energy used that it compares to the power consumption of countries like the Netherlands (117.1 TWh/year) or Pakistan (125.9TWh/year). Mining Bitcoin and other cryptocurrencies could leave adverse impacts on the environment, some fear.
Tesla CEO Elon Musk said, “We are concerned about rapidly increasing use of fossil fuels for Bitcoin mining and transactions, especially coal, which has the worst emissions of any fuel.”
Miners use large and efficient systems to mine blocks and validate transactions, which consumes a significant amount of electricity. The mining process accounts for the vast majority of bitcoin’s energy consumption.
However, the media has exaggerated the environmental impact of bitcoin mining.
Many miners believe this stems in part from institutional and government interests seeking to malign it, but it also stems from real anxiety among those who do not fully comprehend its significance or dynamics.
First and foremost, the 1 million transatlantic flights worth of CO2′ statistic is a nonsense statistic derived by calculating CO2 output as if the energy came from coal plants, while most bitcoin mining activities take place in areas where electricity is extremely cheap thanks to renewables: Hydro, solar, and wind energy are commonly used in hydro valleys.
Second, bitcoin is more than a currency. Because anything can be publicly secured on its blockchain, all kinds of contracts, scripts, and second layer technology can ride on top of it, opening the door to layer 2 technology and smart contracts,which will allow us to make all kinds of documents and information public, secure, and permanent.
Fortunately, there are several eco-friendly crypto currencies accessible, and Ethereum will be 99.5 percent environmentally friendly in the near future.