Bitcoin Mining: The Hidden Cost to the Environment

Bitcoin mining is a major energy consumer, using more electricity than entire countries such as the Netherlands and Argentina.

The global energy use of Bitcoin mining is estimated to be equivalent to that of 66 million homes.

The research project, led by three University of New Mexico professors, aims to quantify the monetary damage caused by cryptocurrency mining.

For every $1 of Bitcoin value created in 2018, approximately $0.49 in human health and climate damages were incurred.

The damages include emissions from fossil fuel power plants, air pollution, and climate change impacts.

Bitcoin mining's environmental damage is greater than the value of the currency itself, with damages exceeding market price.

The industry's environmental footprint is comparable to or even worse than crude oil and gold.

E-waste, land and water use, and noise pollution are additional environmental consequences of Bitcoin mining.

Policy solutions, such as renewable energy sources and carbon offsetting, can curb cryptocurrency's energy demands.

The goal is to raise awareness about the environmental costs of the proof of work process used for mining Bitcoin, not to argue against its use.