Some scientists compare the economic effects caused by industries with respect to their value in production.
On September 29, three scientists published a paper titled “An Economic Estimate of Bitcoin’s Climate Damage Shows a Greater Similarity to Digital Crude Than Digital Gold,” and in that study balance the environmental effects of large industries and the market value of the resulting products. To go to the concrete, for each dollar produced, the Bitcoin impacts $0.35 of environmental damage.
In that article it is considered that the BTC is unsustainable for a simple reason: the mining of this cryptocurrency has been losing in efficiency over time, and not the other way around. Normally, the brands are gaining in sustainability as they evolve, but in this case it is the opposite. During the last five years, the emissions produced have gone from 0.9 tons of CO2 per coin in 2016 to 113 in 2021.
Apparently, the harmful effects associated with it constitute 35% of the value of the cryptocurrency, making Bitcoin a more dangerous commodity for the environment than the livestock macro-farms, which present a proportion of 33%. In the case of gasoline and oil, we would already talk about 41%, compared to 46% pollution due to electricity production from natural gas. In any case, that 35% was not always like this: it is an average. If we look at the figures from the study, that proportion of environmental damage versus benefits reaches 82% in 2020a year in which for every dollar produced, $1.56 in damage was caused.
In the article itself, the authors suggest that the industry should move on, passing from a Proof-of-Work to a Proof-of-Stake algorithm structure. This would reduce your environmental footprint. On the other hand, the use of renewable energy It would also help, of course, but the first step would be that advance, as happened with Ethereum and its Merge.
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