image: Associate Professor, Geography, College of Social Sciences, University of Hawaii at Manoa. view more
Credit: UH College of Social Sciences
A new study published in the peer-reviewed journal Nature Climate Change finds that if Bitcoin is implemented at similar rates at which other technologies have been incorporated, it alone could produce enough emissions to raise global temperatures by 2°C as soon as 2033.
"Bitcoin is a cryptocurrency with heavy hardware requirements, and this obviously translates into large electricity demands," said Randi Rollins, a master's student at the University of Hawaii at Manoa and coauthor of the paper.
Purchasing with bitcoins and several other cryptocurrencies, which are forms of currency that exist digitally through encryption, requires large amounts of electricity. Bitcoin purchases create transactions that are recorded and processed by a group of individuals referred to as miners. Miners group every Bitcoin transaction made during a specific timeframe into a block. Blocks are then added to the chain, which is the public ledger. The verification process by miners, who compete to decipher a computationally demanding proof-of-work in exchange for bitcoins, requires large amounts of electricity.
The electricity requirements of Bitcoin have created considerable difficulties, and extensive online discussion, about where to put the facilities or rings that compute the proof-of-work of Bitcoin. A somewhat less discussed issue is the environmental impacts of producing all that electricity.
A team of UH Manoa researchers analyzed information such as the power efficiency of computers used by Bitcoin mining, the geographic location of the miners who likely computed the Bitcoin, and the CO2 emissions of producing electricity in those countries. Based on the data, the researchers estimated that the use of bitcoins in the year 2017 emitted 69 million metric tons of CO2.
Researchers also studied how other technologies have been adopted by society, and created scenarios to estimate the cumulative emissions of Bitcoin should it grow at the rate that other technologies have been incorporated.
The team found that if Bitcoin is incorporated, even at the slowest rate at which other technologies have been incorporated, its cumulative emissions will be enough to warm the planet above 2°C in just 22 years. If incorporated at the average rate of other technologies, it is closer to 16 years.
"Currently, the emissions from transportation, housing and food are considered the main contributors to ongoing climate change. This research illustrates that Bitcoin should be added to this list," said Katie Taladay, a UH Manoa master's student and coauthor of the paper.
"We cannot predict the future of Bitcoin, but if implemented at a rate even close to the slowest pace at which other technologies have been incorporated, it will spell very bad news for climate change and the people and species impacted by it," said Camilo Mora, associate professor of Geography in the College of Social Sciences at UH Manoa and lead author of the study.
"With the ever-growing devastation created by hazardous climate conditions, humanity is coming to terms with the fact that climate change is as real and personal as it can be," added Mora. "Clearly, any further development of cryptocurrencies should critically aim to reduce electricity demand, if the potentially devastating consequences of 2°C of global warming are to be avoided."
###
MORE ABOUT THE DEPARTMENT OF GEOGRAPHY
Geography (GEOG) is the study of places and the relationships between people and their environment. Geographers explore both the biophysical processes of Earth's surface and the human societies spread across it. It examines how cultural and political economic institutions interact with the natural environment, and the way that locations and places can impact people, and how these relationships change over time. The Department of Geography in the UH Manoa College of Social Sciences offers students an interdisciplinary academic training to study many critical issues that face modern society, such as globalization and its regional implications, climate change and its effects, resource use and sustainability, cultural change and environmental consequences, geopolitics, and the use of geospatial technologies.
MORE ABOUT THE COLLEGE OF SOCIAL SCIENCES
Marked by leadership, excellence and innovation, the College of Social Sciences (CSS) at the University of Hawai'i at Manoa provides students with a culturally diverse experience that transforms them into bold, engaged global citizens who affect change, break down barriers, touch lives and succeed in a multi-cultural context. Its student-centered environment is dedicated to providing students with a vibrant academic climate that affords exciting, intense interaction among students and faculty as they address fundamental questions about human behavior. Featuring outstanding scholarship through internships, active and service learning approaches to teaching, and an international focus particularly in the Asia Pacific region, it prepares students to become leaders in public and private enterprises throughout Hawai'i and Asia.
MORE ABOUT THE UNIVERSITY OF HAWAII AT MANOA
The University of Hawaii at Manoa serves more than 18,000 students pursuing more than 240 different degrees. Coming from every Hawaiian island, every state in the nation, and more than 140 countries, UH Manoa students thrive in an enriching environment for the global exchange of ideas. For more information, visit http://manoa.hawaii.edu. Follow us on Facebook http://www.facebook.com/uhmanoa and Twitter http://twitter.com/UHManoaNews.
Journal
Nature Climate Change