UN points to correlation between Bitcoin price and network energy consumption.

UN scientists, after studying the activity of 76 mining companies, concluded that their energy consumption rising to 173.42 TWh in 2020–2021 coincided with Bitcoin’s ATH of $69,000.

New research by our scientists reveal the staggering carbon, water and land footprints of the global #Bitcoin mining network.

Read the full report: https://t.co/9YRPJsPb8a

Read the peer-reviewed paper: https://t.co/xZOK4gjhn8 pic.twitter.com/fDUAsh37Wm

— United Nations University-INWEH (@UNUINWEH) October 24, 2023

They calculated that, together with a 400% rise in the price of the leading cryptocurrency during that period, the energy spent on its mining rose by 140% globally.

In new data, the UN drew attention to the carbon footprint left by mining installations. According to their figures, 67% came from non-renewable sources, 16% from hydropower, and 9%, 5% and 2% from nuclear, wind and solar sources respectively.

Among the ten largest bitcoin-mining nations at the time—China, the United States, Kazakhstan, Russia, Malaysia, Canada, Germany, Iran, Ireland and Singapore—accounted for 92–94% of global carbon emissions. 

But the crypto community criticised the UN report for citing ‘unscientific theses’.

the mora et al paper is an academic fiction written by undergrads, thrice-debunked in its own journal. it posits a model of bitcoin that bears no resemblance to reality, and it is the source of the ‘bitcoin will warm the earth 2º’ lie. and the UN uncritically cites it here…

— nic ? carter (@nic__carter) October 24, 2023

They pointed to a quoted passage from the study on the growth of Bitcoin’s carbon footprint in 2017 to 69 million tonnes of CO2-equivalent. However, the conclusions drawn in it have already been debunked. In particular, it was shown that the analysis included loss-making mining equipment, which severely distorted final emission estimates.

One of the crazy things about the UN paper is that the authors did read the rebuttals to the Mora et al paper because they cite the Houy 2019 paper, but only to note that BTC price is a factor in determining BTC mining profitability. The UN authors completely ignored the opening…

— Margot Paez / jyn urso (@jyn_urso) October 25, 2023

The mining industry is moving along a decarbonisation path and toward more energy-efficient equipment. Earlier, experts from the Institute of Risk Management stated that Bitcoin could potentially become a catalyst for a global energy transition and reduce harmful emissions.

In August, the mining company Genesis Digital Assets opened three new data centres in eastern South Carolina, powered by renewable energy.