Researchers compare the electronic waste of a single Bitcoin transaction to the disposal of two iPhones

One Bitcoin transaction generates electronic waste weighing as much as two iPhone 12 minis. Economists at the Dutch Central Bank and MIT reached this conclusion in a joint report published in the journal Resources, Conservation and Recycling.

As all transactions on the bitcoin blockchain are recorded in blocks generated by network participants, transaction activity is inextricably linked to mining.

Experts noted that the environmental impact of the cryptocurrency mining process in terms of its carbon footprint ‘well studied’, but the community overlooks the enormous turnover of equipment fuelling the industry. As computational difficulty increases, miners require ever more powerful ASIC devices, and the amount of industry waste grows.

“The useful life of Bitcoin mining devices remains limited to just 1.29 years. As a result, according to our estimates, the bitcoin network currently generates about 30.7 kilotons of electronic waste per year. This figure is comparable to the volume of electronic waste from small information and communications technology equipment in countries like the Netherlands,” the report says.

According to the authors of the study, in 2020 the Bitcoin blockchain processed 112.5 million transactions. Based on this, they calculated that each individual transaction “corresponds to 272 grams of electronic waste” — the weight of two iPhone 12 minis.

Economists say that the growth in waste poses a problem for the cryptocurrency industry, as ASIC devices have no alternative uses. Theoretically, outdated equipment could still be profitable during periods of lower mining difficulty or higher bitcoin prices.

“Nevertheless, there are several factors that hinder a meaningful extension of mining hardware lifespans. Storing the equipment costs money, and over time the probability that it will be profitable declines,” the report’s authors added.

The researchers emphasise that as the price of Bitcoin rises, the problem will only worsen, since it stimulates investments in mining hardware and, consequently, the replacement of obsolete ASICs.

According to the report, if the cryptocurrency community wants to address the problem of electronic waste, bitcoin mining must be shifted to a “more sustainable alternative.” As examples of the latter, the authors cited the Proof-of-Stake algorithm and the used in Chia Proof-of-Space and Proof-of-Time.

Bloomberg previously noted that energy consumption by bitcoin miners exceeded 2020 levels. Many community members regard the industry’s environmental impact as exaggerated.

In September, the infrastructure company Blockstream and Australian investment bank Macquarie agreed to launch in the United States a pilot project for carbon-neutral bitcoin mining.

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