Green Bitcoin: Mining With Zero Carbon Footprint
Bitcoin is under fire once again, this time for its high energy consumption and carbon footprint.
It’s not just Bitcoin taking the heat, either. Other cryptocurrencies like Ethereum have been blasted for its energy requirements and increasing transaction volume.
This adds another dimension to the term “gas fees” in crypto – the gas is real in this case, and it’s taking its toll on the environment.
In short, the pressure is on to steer Bitcoin and the entire crypto sector towards greener pastures, which means reducing reliance on fossil fuels and doubling down on renewable sources.
Here’s why pursuing a carbon-neutral mining strategy is important, and what’s being done on an industry level to reach this ambitious goal.
How Much Energy Does Bitcoin Use?
We hear an aspirational term like “green Bitcoin” and it instantly begs the question: what is not so green about Bitcoin right now?
In its current form, Bitcoin is rather demanding in terms of energy, due primarily to the creation process known as mining.
Massive amounts of computational resources are required to develop and maintain the blockchain that powers Bitcoin, and it must be done to earn this precious digital gold.
While energy concerns weren’t so prevalent when Bitcoin first came on the scene, the astronomic rise of the world’s first cryptocurrency has brought many new miners onto the bandwagon.
Not only are there more hobbyists building DIY rigs and mining Bitcoin at home, but plenty of industrial mining operations have also been set up, ramping up energy consumption exponentially in just a few years.
Now, the statistics are making the rounds – Bitcoin consumes as much energy each year as a midsize European country. What can be done to slow or reverse the trend?
Carbon Emissions vs. Clean Energy
Let’s make a key distinction before going any further. The idea of carbon emissions is different from overall energy output, and one’s carbon footprint can be reduced while still keeping the energy flowing from renewable sources.
What does carbon footprint anyhow, and why is this a part of the crypto conversation now?
The term refers to the total amount of greenhouse gases generated by actions in a set period of time. This could be the number of potato chips Americans eat in a week, the number of jet airplane miles we fly in a year, or the amount of Bitcoin mined worldwide each day.
The backdrop here, of course, is the premise that greenhouse gases like carbon dioxide and methane are inherently harmful to the environment, at least in the quantities they are emitted in the modern world.
We’re told that by lowering carbon footprints on an individual level and across the economy at large that we can reduce the amount of these gases in the atmosphere, and then slow the rate at which global warming or climate change will occur.
Whether you believe firmly in this conclusion or not, it’s clear that a smaller carbon footprint would be better for things like air quality, environmental standards, and overall wellbeing of life on earth.
Besides, in terms of sustainability, the fossil fuels from which greenhouse gases arise are increasingly scarce and pricey, making it more difficult to squeeze profits out of Bitcoin mining and industrial efforts in general.
Is Carbon-Neutral Bitcoin Possible?
A carbon footprint of zero is certainly a noble pursuit, but is it even possible to achieve? We can each do our part to reduce our consumption in the home and workplace, but when it comes to changing course for billion dollar industries, it’s no so simple as packing a lunch.
Considering that transportation, housing, and other industries are far and away more damaging in terms of carbon output, it’s somewhat puzzling why so many critics are focusing on the energy issue when it comes to crypto.
Of course, carbon neutrality is possible, at least in countries committed to making it happen. Many companies have been deemed carbon neutral so far, which is certainly a step in the right direction.
The broader question has to do with humanity’s carbon footprint in total. While many companies and countries are on board with the program, China still tops the charts for energy consumption and fossil fuel use by a long shot.
China is also responsible for nearly 70% of Bitcoin mining in the world right now, although bans in the region may bring mining operations back to areas like the southern United States or areas where energy is cleaner and more affordable.
Efforts to Achieve a Green Bitcoin
The takeaway here is that there remain many roadblocks to achieving a truly green Bitcoin, just as there are with all environmental initiatives.
However, it’s still worth trying in every possible way - this is the mindset embraced by industry leaders in ESG Bitcoin mining.
Here are a few ways in which forward-thinking crypto proponents are tapping into renewable energy and coordinating the industry on a broader scale.
The Crypto Climate Accord
Inspired by the success of the Paris Climate Agreement, a group of crypto miners in the private sector have teamed up to bring us the Crypto Climate Accord, boasting an ambitious plan to reduce and eventually neutralize carbon emissions in the crypto space.
The agreement only has a handful of signatories as of now, but their intentions are in the right place – aim to transition blockchain technologies to renewable energy by 2030, and by 2040, reach net-zero emissions for the crypto industry as a whole.
This is a project that goes beyond Bitcoin, requiring coordination from governments, communities, companies, and other organizations that will contribute to innovation and strategy.
On top of that, the CCA is encouraging open-source exchange of information to help mining operations track and monitor their efforts to go green and boost efficiency. This is appealing from an environmental standpoint and in terms of profits.
While the CCA is still gaining momentum, it’s good to see that there is growing support for the concept of green Bitcoin, and that private sector firms are taking action instead of simply talking about the issue.
Creative Solutions
What will be needed on a ground level to propel the green Bitcoin project?
For starters, reliance on fossil fuels and coal will need to be minimized, although natural gas and petroleum are preferable to something like coal.
Furthermore, investments in infrastructure like solar components, wind power plants, and hydrogen fuel cells will help lead the way for a greener footprint across the industry.
There are still some obstacles in the way, of course, namely the storage and transport of renewable energy once it has been harnessed. Advocates of the green crypto movement are eager to see how their initiatives spur innovation in the renewable energy sector and drive progress on higher levels.
Green Bitcoin, Coming Soon
Whether you believe Bitcoin is contributing to an urgent climate crisis or that it’s the cure-all we need, carbon-neutrality is definitely something worth striving for.
With the CCA getting traction and awareness spreading on the issue, we’re seeing the convergence of crypto and green energy finally come to fruition. The results could be astounding if Bitcoin and other digital assets continue to rise in popularity and see broader adoption.
For now, stay tuned to crypto news and track the progress of Bitcoin industry leaders as they seek to make fundamental shifts that will change the world for the better.
Sources:
Bitcoin’s Carbon Footprint | Reuters