Since the crypto asset Bitcoin is created by data mining running programs on computers, it requires a lot of power to create or operate. Because of this, areas with low power are often used as Bitcoin mining sites. As the power consumption of cryptocurrencies becomes an issue from the perspective of global warming, Coin Carbon Cap, which displays power consumption and carbon dioxide emissions by cryptocurrencies, has been released.
Recently, the value of cryptocurrencies, including Bitcoin, is on the rise. However, in 2018, there are also concerns about the impact on the environment, such as a report that the temperature will rise by 1.5 degrees within 20 years due to bitcoin mining. Bill Gates also made a statement in March 2021 to the effect that Bitcoin would have an adverse effect on the planet.
Coin Carbon Cap is a visualization of how much cryptocurrencies, including Bitcoin, affect the environment. Coin Carbon Cap is based on the type of cryptocurrency, transactions per megawatt hour, amount of carbon dioxide per transaction, how much Tesla Model Y can travel with electricity per transaction, number of transactions in 24 hours, median transaction fee per 24 hours, energy consumption per 24 hours shows
Cryptocurrency types include Bitcoin SV, Ethereum, Bitcoin Cash, USD Coin, Tether USD, Uniswap, Chainlink, Litecoin, Dash, Dogecoin, Jetcash, and Bitcoin. Comparing Bitcoin and Ethereum, the number of transactions per megawatt hour is Bitcoin 2.1 and Ethereum 49.6, and Ethereum has overwhelmingly more transactions per power than Bitcoin. In addition, there is a significant difference in carbon dioxide emissions per transaction, more than 20 times that of Bitcoin and Ethereum. When looking at the amount of carbon dioxide per transaction, Bitcoin SV is the smallest, followed by Ethereum, Bitcoin Cash, and Chainlink.
On the other hand, it is also pointed out that the use of PoW (proof of work) energy, one of the Bitcoin consensus algorithms, is not proportional to the transaction volume. In fact, cryptocurrency energy use is largely driven by mining rather than transactions, and the popularity of mining depends on the price of cryptocurrency. Thus, Bitcoin’s energy use and carbon dioxide emissions are the largest, and the unpopular Bitcoin SV energy use and carbon dioxide emissions are the least. Related information can be found here.