Taken as a share of the market price, the climate change impacts of mining the digital cryptocurrency Bitcoin is more comparable to the impacts of extracting and refining crude oil than mining gold, according to an analysis published in Scientific Reports by researchers at The University of New Mexico.
The authors suggest that rather than being considered akin to ‘digital gold’, Bitcoin should instead be compared to much more energy-intensive products such as beef, natural gas, and crude oil.
“We find no evidence that Bitcoin mining is becoming more sustainable over time,” said UNM Economics Associate Professor Benjamin A. Jones. “Rather, our results suggest the opposite: Bitcoin mining is becoming dirtier and more damaging to the climate over time. In short, Bitcoin’s environmental footprint is moving in the wrong direction.”
In December 2021, Bitcoin had an approximately 960 billion US dollars market capitalization with a roughly 41 percent global market share among cryptocurrencies. Although known to be energy intensive, the extent of Bitcoin’s climate damages is unclear.
Read more at University of New Mexico
Image: Researchers at The University of New Mexico find digital cryptocurrency Bitcoin is more comparable to the impacts of extracting and refining crude oil than mining gold. (Credit: University of New Mexico)