Environmental impact of Bitcoin. The estimate of polluting nature of an activity is quite difficult to determine. Indeed, this distinction is often based on data collected in order to support the proposed thesis. Which can already pose a methodological problem. But another more variable element must also be taken into account. Because the reading of the results obtained is done with the open-mindedness of the person conducting the analysis. And very often, like Bitcoin is deemed useless, all the energy it consumes is to be classified indiscriminately in the pollution category. But is it that simplistic?
Cryptocurrencies must not harm the environment
Obviously, Bitcoin consumes energy. This is due to its operating principle based on Proof of Work (PoW). To deny this evidence would be in bad faith. But a move to Proof of Stake (PoS) based on the Ethereum network model only makes sense for an association like Greenpeace. As this consists of focusing on the power outlet without trying to see the monetary revolution that it makes possible.
Indeed, Bitcoin offers a decentralized network, resistant to censorship and accessible to all. A tool that any NGO could be required to use in the event of government censorship against it. But, according to the report recently published by the United Nations University (UNU), “ technological innovations are often associated with unintended consequences and Bitcoin is not an exception “.
In question, a growth presented as rapid in the cryptocurrency sector. And even if “ this digital economy (…) has advantages “, this report alerts to the special attention that the world must pay with hidden and neglected environmental impacts of this growth.
“ Our results should not discourage the use of digital currencies. Instead, they should encourage us to invest in regulatory interventions and technological advances that improve the efficiency of the global financial system without harming the environment. »
Kaveh Madani, director of the United Nations University Institute for Water, Environment and Health
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Bitcoin mining once again singled out
And, like every time ecology meets the cryptocurrency sector, Bitcoin mining finds itself in the dock. However, the figures used to make this estimate come from a 2018 article – widely criticized and invalidated – published by a certain Camilo Mora. A document supposed estimate the impact of Bitcoin mining on global warming. But obviously the main tool used at the time was a ladle and a finger held up in the direction of the wind.
A situation described on the X network by Margot Paezclimate change physicist and admirer of economic heterodoxy:
“ One of the craziest aspects of the UN article is that the authors read the rebuttals to Mora’s article because they cite Houy’s article published in 2019, but only to note that the BTC price is a factor in determining BTC mining profitability. The UN authors completely ignored (…) Houy’s comments. »
Indeed, one of the conclusions of this report highlights that the price of Bitcoin is closely correlated to its ecological footprint. Indeed, “ a 400% increase in the price of Bitcoin between 2021 and 2022 triggered a 140% increase in energy consumption of the global Bitcoin mining network “. Nothing could be more logical since this coincides with the activity triggered by the last bull market.
However, during this period, the share of fossil fuels intended to power Bitcoin mining was estimated at 67%. A figure that many players in this industry are working to reduce using renewable sources. Because Bitcoin could play a leading role in the ongoing ecological and economic transition. And to condemn it too quickly as a simply polluting option would be as simplistic as it is reductive.
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