Every year, countries gather at the Conference of Parties (COP) to discuss and commit to climate change actions. However, one industry that has come under scrutiny in recent years is Bitcoin mining. Here are the most important things to know about this issue:
1. Bitcoin mining consumes a significant amount of energy: The process of mining Bitcoin involves solving complex mathematical equations, which requires a lot of computing power and energy. As a result, Bitcoin mining consumes a considerable amount of electricity, which contributes to greenhouse gas emissions.
2. The majority of Bitcoin mining is powered by fossil fuels: According to a study by the University of Cambridge, over 60% of Bitcoin mining is powered by coal and other fossil fuels. This means that the environmental impact of Bitcoin mining is even greater than previously thought.
3. There are efforts to make Bitcoin mining more sustainable: Some companies and organizations are working on developing renewable energy sources for Bitcoin mining, such as hydroelectric power. Additionally, there are proposals to implement carbon taxes on Bitcoin mining to incentivize companies to reduce their carbon footprint.
In summary, while countries are under pressure to ramp up their climate change commitments at the COP conference, Bitcoin mining has become an easy target due to its significant energy consumption and reliance on fossil fuels. However, there are efforts underway to make Bitcoin mining more sustainable and reduce its environmental impact.