Even in the midst of a bear market, Bitcoin (BTC) detractors have persisted, with new study raising concerns about its energy use and environmental impact, as reported by Cointelegraph.
According to the latest article published on September 29 by experts at the University of New Mexico’s department of economics, Bitcoin works more like “digital crude” than “digital gold” in terms of climate impact.
The study attempts to evaluate and compare the energy-related climate harm caused by proof-of-work Bitcoin mining to other businesses. It claims that between 2016 and 2021, each $1 in BTC market value created caused $0.35 in worldwide “climate impacts,” adding, “Which as a share of market value is in the range between beef production and crude oil burned as gasoline and an order-of-magnitude higher than wind and solar power.”
The researchers further stated that the findings need consideration, “If the industry does’nt shift its production path away from PoW, or move towards PoS, then this class of digitally scarce goods may need to be regulated, and delay will likely lead to increasing global climate damages.”
Cointelegraph further noted that Lachlan Feeney, founder, and CEO, of Australian-based blockchain development agency Labrys said to Cointelegraph that “post-merge pressure is on BTC (Bitcoin).”
Furthermore, transmission and distribution electricity losses in the United States alone amount to 206 TWh per year, enough to power the Bitcoin network 2.2 times. Cambridge also claims that the Bitcoin network’s power consumption has dropped by 28% since mid-June. This is most likely due to miner capitulation during the weak market and the adoption of more efficient mining hardware.
(With insights from Cointelegraph)