Cryptocurrency miners struggle to reduce carbon emissions

Some crypto assets, such as Bitcoin and Ethereum, can be obtained as mining rewards for solving difficult calculations to add new blockchains. To avoid criticism that such mining is increasing carbon emissions, mining companies are trying to curb carbon emissions wherever possible by introducing renewable energies.

The amount of computation required for mining is huge. Only those who solve the problem will be rewarded. In order to mine in large quantities faster than anyone else, companies that mine by moving several high-performance computers at the same time have appeared early.

However, in order to fully operate tens or hundreds of units to solve cryptographic calculations, vast amounts of power are required. Therefore, it is also pointed out that crypto asset mining is one of the major causes of global warming by causing excessive emission of greenhouse gases such as carbon dioxide and methane.

Mining companies tend to build dedicated mining facilities in areas with low electricity rates. Most of the cheap electricity comes from thermal power generation, and as a result, the reality is that carbon emissions from mining cannot be reduced. Energy Consumption by Bitcoin Mining Researchers say that those who mine cryptocurrencies can’t afford to worry about electricity bills and the climate.

In order to reduce carbon emissions from mining such crypto assets, crackdown on mining companies is being strengthened in some states and regions, just as New York State of the United States is considering a law banning the use of fossil fuels for mining.

In addition, some bitcoin mining companies claim to be using renewable energy such as wind power or solar power. For example, in El Salvador, where Bitcoin is the first legal currency in the world, mining companies that are getting electricity from geothermal power in volcanic areas are appearing. There are also companies that build mining facilities in partnership with nuclear power plants.

In April 2021, an industry agreement (Crypto Climate Accord) that aims to reduce carbon emissions from crypto asset mining to zero by 2030 was also announced, and 180 crypto asset-related companies are currently expressing their participation. One of these, Griphon Digital Mining, claims to have virtually zeroed its carbon footprint by launching a 21-megawatt hydroelectric facility and contracting with a utility that supplies more than half of its electricity from renewable sources.

However, experts say that even if eco-friendly renewable energy is used for mining, it is not necessary to use fossil fuel-derived power to bring it to the level of operating mining facilities. It is believed that fuel consumption cannot be stopped.

Meanwhile, according to an economic research institute, Bitcoin mining activity worldwide declined by 20% right after crypto asset trading was banned in China. Related information can be found here.