Bitcoin accounts for 0.08% of all world’s emitted CO2, study shows

Bitcoin accounts for 0.08% of all world's emitted CO2, study shows
5 months ago
2 mins read

As Bitcoin’s popularity has grown, the controversy over its energy consumption and environmental impact has also intensified.

According to a recent report published on January 25, 2022, by CoinShares, Bitcoin accounted for just 0.08% of the world’s carbon dioxide (CO2) emissions in 2021, indicating that talking points criticizing the network’s power usage appear to have been inflated.

The study stated: 

“At 0.08 % of global CO2e emissions, removing the entire mining network from global demand—and thereby depriving hundreds of millions of people of their only hope for a fair and accessible form of money—would not amount to anything more than a rounding error.

The research presents the most up-to-date information on the current condition of the Bitcoin mining sector, as well as information on environmental, social, and governance (ESG) problems. 

As per the data: 

“At an annual energy draw of 89 TWh, the Bitcoin mining network uses approximately 0.05% of the total energy consumed globally. 

Bitcoins global energy consumption. Source: CoinShares Research (January 2022)

Bitcoin environmental debate

Since Bitcoin first emerged, debates about the flagship cryptocurrency’s energy consumption and indirect environmental effect have recurred, becoming a perennial topic that tends to be revived with each subsequent market cycle.

In particular, the report established a complete model to predict emissions and a data-gathering mechanism to supply the framework with accurate information. It also labeled the CO2 emitted in the process of mining Bitcoin as “inconsequential,” it stated:

“In the grand scheme of things, the carbon emissions emitted by electricity providers supplying the Bitcoin mining network are inconsequential.”

Specifically, ESG concerns have motivated a number of corporations to withdraw or discuss discontinuing support for Bitcoin. For instance, Tesla (NASDAQ: TSLA) had previously suspended Bitcoin payments citing environmental concerns.

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Jordan Major

Jordan is an investor and market analyst. He's passionate about stocks, ETFs, blockchain, and digital assets. At Finbold.com, he delves into the technicalities to obtain future trends for new market traders and gives insights into user-friendly platforms for beginners.