The idea that surrounds crypto mining is that it is extremely energy intensive and is drastically damaging the environment over time.
Digital asset firm CoinShares break down the cryptocurrency mining process and how much it actually impacts the environment, in a new study they just released. Within the study, Christopher Bendiksen, Samuel Gibbons, and Eugene Lim researched why miners are continually perceived as those who use too much power, and give a statement on why this is false.
“Our view is that cryptocurrency mining — while costly — is doing little meaningful harm as far as the environment is concerned, and is also unlikely to do so in the foreseeable future.”
To back up this statement the three researches give some statistics about those who mine cryptocurrency. Within their research they found that over 75% of those who mine crypto, use renewable energy to do so. They also bring into consideration the location of where over half of all Bitcoins are mined, which is in Sichuan, China. These Bitcoin mining facilities in China are mostly in areas with a cooler overall climate, therefore they have less need for power to keep the mining rigs cool, compared to a location with a warmer overall climate. Sichuan also is known to have 90% of all of their generated power coming from renewable sources.
“We keep stressing these facts because the common public narrative surrounding the environmental impact of cryptocurrency mining is overwhelmingly negative.”
The researchers also want to make clear that the power consumed by mining Bitcoin looks almost insignificant compared to other commodities such as banking or mining gold.