China could end up surpassing its emissions reduction goals as a result of carbon-intensive cryptocurrency mining, research released this week shows.
Around 75% of the global bitcoin mining takes place in China, where there are affordable electricity and easy access to companies who manufacture specialized mining computers, the study said.
As a result, China’s bitcoin carbon emission is as big as one of its 10 biggest cities, the research claims.
Massive amount of carbon footprint
Bitcoin is estimated to produce more than 130 million metric tons of carbon emissions by the time the tech’s energy needs reach their highest point in 2024, based on new research published in the scientific journal Nature Communications.
Bitcoin and other digital currencies rely on “blockchain” technology, with entries that must be validated and encrypted. Unlike most traditional forms of currency, bitcoin is based on a decentralized network and needs to be “mined.”
The network is secured by individuals called “miners” who use high-powered computers to confirm transactions. These miners operate purpose-built computers to solve complex mathematical puzzles that allow a bitcoin transaction to happen.
Bitcoin as reward
Miners who complete and verify a transaction get a bitcoin as a reward. Mining computers eat up a huge amount of electricity.
Bitcoin is on another bull run, with the price for one BTC reaching an all-time peak of $60,396 on March 13. Institutional investors, including BlackRock and Goldman Sachs are piling into the crypto space.
As bitcoin has risen in demand and popularity, China has become a major hub for the crypto technology.
If the country’s bitcoin industry were a country, its total energy requirement would have ranked 12th in the world in 2016, topping major economies like Saudi Arabia and Italy, according to a study by Sinan Kufeogl, civil engineering research associate at the University of Cambridge.
Image courtesy of Karolina Grabowska/Pexels
Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://bitcoinerx.com/bitcoin/chinas-bitcoin-mining-poses-threat-to-its-climate-change-goals-research-shows/
