Bitcoin (BTC), a popular topic of discussion, has been banned from mining in recent years. Due to its environmental impact, the Chinese government banned Bitcoin mining in 2021. On Tuesday, news broke that the Kosovo government had banned all crypto mining because of an energy crisis. Miners could feel the pinch if concerns about the environment start to grow, as Bitcoin (BTC), mining is a lucrative business.
Bitcoin Mining and the Numbers
In July 2017, the Chinese government banned Bitcoin (BTC-mining) The governments position on cryptos did not justify the decision to ban mining. China has set itself the goal of becoming carbon neutral in 2060. Due to the negative impact of Bitcoin (BTC), mining on the environment, a ban was necessary.
These key mining statistics are worth looking at when you consider energy consumption and climate impacts.
- According to Columbia Climate SchoolBitcoin (BTC), which is a cryptocurrency, is estimated to consume 707KwH per transaction. There are also mining machines that heat up and require cooling.
- The University of CambridgeIt is estimated that Bitcoin (BTC), mining consumes 121.36 Terawatt-hours of energy (TWh) annually. This estimate would make Bitcoin a top 30 energy user if it were a nation.
- It is estimated that Bitcoin mining generates between 22m and 22.9m metric tons CO2 each year.
- Bitcoin (BTC), mining could be a major factor in global warming. Global warming above 2°CIn less than 3 decades
Hashrates, the key metric in Bitcoin (BTC), mining, are crucial. Hashrates also rose due to the rising price of Bitcoin (BTC), through 2021.
Bitcoins (BTC), a cryptocurrency, saw its hashrate rise to an ATH 198.5m per second in April 2021. China had not yet banned Bitcoin (BTC-mining) at that time. However, news broke about the hashrate’s jump to a new ATH of 208m Terahashes per Second at the beginning of the year. This level was reached despite China’s ban mining. Although China may have addressed its carbon footprint problem, the impacts on global warming are still being felt. Miners have simply moved resources to mining-friendly countries, which include the U.S.
U.S. Congress to Assess Bitcoin Mining Environmental Impact
Overnight, The wires are buzzing with newsA U.S. Congress sub-committee is preparing a hearing in order to assess the environmental impact of cryptos, mining, and other technologies.
It is not surprising that crypto mining and its impact on the environment are becoming more controversial. Numerous reports claimed that the United States was the largest Bitcoin (BTC), mining nation.
According to Cambridge Centre for Alternative FinanceIn August 2021, 35.4% of global hashrate was accounted for by the United States. In April 2021, the U.S. had only 16.8%. China had previously accounted for 46% of the April 2021 total, just prior to the ban. This was down from 75.5% in September 2019.
U.S. greenhouse gas emissions are the highest in terms of emissions reportedlyIn 2019, total CO2 emissions were 6.6bn metric tonnes. According to some reports, U.S. CO2 emissions dropped to 4.7bn metric tons in 2020. However, for 2021 IHS MarkitProjections for a 7.6% rise in emissions to 5.21 billion tonnes. Although this is still a substantial decrease from the 2019 figure, it’s worth noting that global carbon dioxide emissions reached a record-setting high in 2019. Global emissions reportedly reached an ATH 36.7bnmetric tonnes in 2019.
Although it might take some time, an outright ban of Bitcoin (BTC), mining in the U.S. is possible. It remains to see if other governments take the same steps to reduce the impact on the environment.