Researchers from the Technical University of Munich They encourage regulators to look beyond Bitcoin to assess the environmental impact of mining activities.
Ulrich Gallersdörfer, Lena Klaassen and Christian stoll, in the latest issue of the scientific journal Joules, released August 4th, state that Only 66% of the energy that the top 20 cryptocurrencies consume by market capitalization is used on the Bitcoin network (BTC).
The authors of the report state:
“Based on the algorithms, the current hash rate, and the mining equipment currently available, we believe that Bitcoin consumes approximately 3/4 of the total energy, while the other cryptocurrencies use the remaining third.
Lesser known currencies thus increase the energy requirement of Bitcoin by around 50%, which, taken individually, can lead to significant environmental damage. “
The study identified the Altcoins energy consumption by analyzing their hash rates and equipment for mining. In particular, the networks of Ethereum (ETH), Bitcoin Cash (BCH), Bitcoin SV (BSV), Litecoin (LTC), Monero (XMR), Dash (DASH), Ethereum Classic (ETC) and Zcash were examined. (ZEC), DogeCoin (DOGE), Bitcoin Gold (BTG), Decred (DCR), RavenCoin (RVN), MonaCoin (MONA), Bytom (BTM), SiaCoin (SC), DigiByte (DGB), Horizen (ZEN), Komodo (KMD) and Bytecoin (BCN).
Is Cryptocurrency Mining Destroying the Planet?
The research team found that the amount of energy used in mining is an issue that environmentalists are concerned about. Many studies focus solely on Bitcoin and not all cryptocurrencies.
The report makes this clear “Consumption itself is not related to climate change”. On the other hand, the document states this Mining tends to place unexpected stress on the power grid, that requires additional resources. “Increased peak load times for some forms of energy could lead to changes in the supply sources and alter the intensity of local emissions.” So, This could worsen the environmental impact.
Back in 2009, the pioneer of Bitcoin, Hal Finney, had informed as Mining can create a nightmare in the environment because of your energy needsand that before the creation of altcoins.
according to DigiconomistThe Bitcoin mining network currently consumes around 63.5 terawatt hours, a higher figure than in many industrialized countries such as Switzerland.
The answer is … oil?
Most of the energy currently consumed in the BTC network comes from renewable sources. According to a report released by the company in December 2019 CoinSharesthe figure would be about 73%.
One proposed solution to address the overconsumption problem associated with cryptocurrencies is Conversion of excess gas, which is produced during oil production, into energy. By placing mining equipment in containers near wells, There would be no need to build pipelines or waste excess gas.
This system could be simple Convert excess gas or oil into energy so that mining machines work.