Bitcoins as a threat to climate protection

Spektrum der Wissenschaft

9.4.2021

Translation: Eva Francis

If the run on cryptocurrencies continues, they will soon consume as much electricity as medium-sized EU states. Chinese researchers are now proposing countermeasures.

Bitcoins are based on blockchain technology. In principle, anyone can use this technology to create new digital coins, which are then worth hard cash. To do this, however, he or she must have a computer solve special computational tasks. This is worthwhile in countries with low electricity costs – and with powerful hardware that performs the calculations as energy efficiently as possible.

It’s been known for some time that the growing Bitcoin industry is very energy-intense. The team led by Shangrong Jiang from the University of the Chinese Academy of Sciences now wanted to find out how much more energy might be consumed in the future. To do this, the researchers developed four scenarios that include the market as well as possible political responses.

They advocate making cryptomining more environmentally friendly with targeted legislation, such as a CO₂ tax or minimum energy efficiency requirements for miners. According to the research team, it would be even better if mining were only allowed in regions with a high proportion of hydropower, and not where it currently often takes place: in areas that primarily get their electricity from coal-fired power plants.

Spektrum der Wissenschaft

Wissenschaft aus erster Hand

dirdjaja@spektrum.de

Experts from science and research report on the latest findings in their fields – competent, authentic and comprehensible.

---

News + Trends

From the latest iPhone to the return of 80s fashion. The editorial team will help you make sense of it all.

Show all