Bitcoin, as it is known, works with the proof-of-work algorithm, and machines consume a lot of energy when running it. According to some studies, it is not possible to run the proof-of-work algorithm indefinitely due to high energy consumption when it comes to bitcoin continuity…
The continuous cycle of block mining encourages people all over the world to mine Bitcoin. Since mining can provide a solid revenue stream, people see no harm in using power-hungry machines to take advantage of it. Over the years, however, this has led to an epic increase in the bitcoin network’s total energy consumption. The entire Bitcoin network now consumes more energy than a few countries, according to a report by the International Energy Agency.
Perhaps Bitcoin’s biggest problem is not large energy consumption, but the fact that most of the mining facilities in the Bitcoin network are located in regions (especially in China) that rely on coal-weighted power (direct or load-balancing). So simply put: “Coal fuels Bitcoin.”
The complete determination of the carbon impact of the Bitcoin network is the product of years of study. To do this, you need to know not only the power requirement of the Bitcoin network but also to know where it comes from. The location of the miners is an important factor to know how dirty or clean the power they use.
The latest data on the carbon footprint is included in Garrick Hileman and Michel Rauchs’ Global Crypto Currency Benchmarking Study. In this study, the total energy consumption of facilities representing roughly half of the total Bitcoin hash ratio is 232 megawatts. Mining plants in China are responsible for about half of this and show energy consumption of 111 megawatts.
The table below shows a breakdown of the energy consumption of mining plants examined by Hileman and Rauchs. By applying the emission factors of the network concerned, we see that the Bitcoin network has an average carbon density of 475 gCO2eq per kWh consumed.