Can Bitcoin Mining Go Green?
What is bitcoin mining? And could it ever go green?
To retrieve Bitcoin, you must mine it. Bitcoin mining is only achieved by solving complex math problems through a sophisticated computer. Once the computer has successfully solved these mathematical puzzles or “blocks,” they are verified bitcoin transactions recorded in the blockchain ledger. When miners receive bitcoin rewards by solving these complex algorithms, it motivates others to continue mining; legitimatize and monitor these transactions to verify their validity and prevent “double-spending.”
The race towards successful bitcoin mining has increased substantially, and miners are compensated respectfully. Unfortunately, bitcoin mining comes at the expense of significant energy waste. Mining for cryptocurrency would mean we would no longer need a centralized bank, so how does solving math problems cause such a substantial impact on the environment? Consider the amount of energy and computing power it must take to mine cryptocurrency. When bitcoin was first created in 2009 by its founder, Satoshi Nakamoto, it took relatively little computing power to mine for a single bitcoin. In 2017, bitcoin mining began to consume the same amount of energy the Republic of Ireland consumes (approximately 30 terawatt hrs.). Although we are still unsure of the exact amount of electricity required to mine such cryptocurrency, it is estimated to be over 121 terawatt-hours annually. These are significant numbers that need to be addressed by sustainable corporations and organizations. An impressive initiative looking for a sustainable solution, the Moonlite Project, is a data centre in Iceland designed exclusively for mining cryptocurrency and will soon be running based on 100% renewable energy.
Considering China has the cheapest cost of electricity, it is responsible for over 65% of the bitcoin mining worldwide. Where there is cheap electricity, there are fossil fuels, producing greenhouse gas emissions leading to significant environmental issues. Sadly, even where there are renewable energy sources, countries still widely use fossil fuels for most electricity. Although greenhouse gases do enough damage to the environment on their own, these advanced computer systems additionally contribute an even more substantial amount of electronic waste (e-waste). The machines used to mine Bitcoin become useless immediately following their single task, contributing to the incineration of them or the addition to landfills. So, what can be done? Sustainable, small-scale bitcoin operations are making themselves known, addressing the amount of electricity and heat required to sustain mining. An example of a company making great strides is a Canadian startup, Myera Group, focused on using the heat generated from mining to farm a sustainable food source.
It is essential to consider the environmental impact this is causing, as the carbon footprint of Bitcoin energy in 2018 was estimated to be 19 to 29.6 million metric tons of CO2 according to the Bitcoin Energy Consumption Index. As a globe, we hope to see more initiatives like Myers Group and the Moonlite Project so that we may be able to call bitcoin “green” one day. Otherwise, we may not be able to continue down this path of having a genuinely viable digital currency.