China-based mining farms will consume more than 296.59 TWh of electricity within three years and will surpass the Philippines in greenhouse-gas emissions. This is according to a scientific study published in Nature Communications.
According to calculations by a group of Chinese and British economists, over 78% of the world’s mining capacity is located in China.
Data: Nature.com.
The researchers have developed a mathematical model that takes into account the energy source for Bitcoin farms, their efficiency, and the factors that influence greenhouse-gas emissions. Using it, scientists estimated the current energy use of China’s crypto industry at about 50 TWh.
Calculations show that, given rising mining difficulty, by 2024 mining farms will consume more than 296.59 TWh of electricity. This is comparable to the energy budgets of Saudi Arabia, Italy, Mexico, and several other large countries.
Data: Nature.com.
In terms of greenhouse-gas emissions, Bitcoin farms will reach 130.5 metric tons and surpass the Philippines, Nigeria, and the Czech Republic, drawing closer to Algeria and Venezuela.
Researchers say that mining will rise to tenth place in energy consumption and carbon dioxide emissions, overtaking China’s largest cities and a number of leading industrial regions, including electronics manufacturing.
In total, cryptocurrency production will be linked to more than 5% of China’s total greenhouse-gas emissions, which will be emitted by power plants.
“Mining is not counted anywhere as a separate source of carbon dioxide, which complicates the assessment of its impact on [simple_tooltip content=’the allowable amount of carbon dioxide that can reach the atmosphere without causing a temperature rise of more than two degrees’]carbon budget[/simple_tooltip] of the PRC. Policymakers should address this issue as soon as possible,” the researchers noted.
Scientists propose restricting Bitcoin mining in Chinese regions where coal-fired power plants are the main energy source. Economists estimate that this would maximize the reduction of greenhouse-gas emissions in line with the climate commitments China has endorsed under the Paris Agreement.
In February, the annual electricity consumption for Bitcoin mining surpassed that of Argentina as a whole, reaching 121.36 TWh.
According to Microsoft co-founder Bill Gates, one Bitcoin transaction uses more energy than any other payment method, a fact that has a negative impact on the global climate.
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