Does the market price of Bitcoin affect climate change?

As Bitcoin prices rise, many people step into the Bitcoin investment and mining industry. So-called the center of the fourth industrial revolution, the blockchain service encourages Bitcoin to follow its high-flying trend. However, there are many voices of concern that Bitcoin might be the cause of climate change. Some people even warn that Bitcoin could lead to the demise of all humanity. 

So, what is the correlation between Bitcoin and climate change? On April 7, “Nature Communications” reported that China’s excessive power consumption and the resulting emissions of carbon dioxide encourage global warming. Bitcoin is a blockchain technology that allows people to solve problems on computers and grant Bitcoin in exchange. In the mining process of Bitcoin, the power consumption of computers increases, which accelerates global warming. In particular, electricity in China, which occupies 70% of Bitcoin stopes (mining place) worldwide, relies on coal fuel that emits carbon dioxide. According to the “Bitcoin Power Consumption Index” of Cambridge University in the U.K, about 15.68 GW (gigawatts) of electricity was consumed per hour on April 7, and the annual emission of carbon dioxide from Bitcoin mining was about 40 Mt (Megatons). While many people are enthusiastic about Bitcoin mining, it remains true that much of nature is getting destroyed. Therefore, it would be better to invest in virtual currency that minimizes environmental harms.

By: Minjae Kim