MINERS TRYING to LOWER THEIR CARBON FOOTPRINT
Yes. Yes.
Others have added solar panels to their server halls or made deals for low-carbon nuclear power.
Many have opened businesses in areas such as upstate New York, Canada and Iceland where there is abundant, emission-free hydro or winds power.
It is driven by self-interest as well as concern for the climate. Renewable power tends not to be as expensive as other sources.
So, BITCOINS EMISSIONS ARE LOWERING?
It’s difficult to know.
The China ban of June 2021 deprived Bitcoin miners of clean, abundant hydropower, and they were forced to search for any reliable, cheap energy.
Some opened up shops near renewable sources of energy in the US. Others opened up in countries like Kazakhstan where fossil fuels still dominate energy.
Because no one knows where all the miners are or what power they use, it is difficult to determine how this will impact Bitcoins carbon emissions.
One study published in February by Joule, a research journal, suggested that Bitcoins environmental impact had worsened after China’s move. The percentage of renewables used in the network’s power has fallen from more than 40% in 2020, to around 25% in August 2021.
Do not forget the environmental impact of the growing pile of old computer gear being discarded in an effort to maintain processing power.
WHAT ARE GOVERNMENTS DOING?
Bitcoin miners can still be found in some areas of the world where there is surplus renewable power.
Texas, for instance, is trying attract more of them as a source demand response to match its variable wind output. In some places they are considered a threat.
China’s ban on Chinese imports was in response to a power shortage that forced it to ration electricity supply, and reduce industrial output.
After suffering energy shortages, Kazakhstan, a major Bitcoin producer imposed limits.
The Swedish financial regulator has called for an EU-wide ban on crypto mining. He said it threatened the climate transition that is urgently needed.
Some governments would prefer to channel renewable energy to older industries that are trying decarbonise, like transportation and manufacturing.
Other big power users complain about the fact that Bitcoin miners sucking up limited energy resources yield little return to host country in terms of jobs and tax revenue.
