Researchers from the University of new Mexico published the results of a study of the impact of mining of Bitcoin on the environment. Experts found out that in 2018 the industry of mining major cryptocurrencies definitely have caused environmental damage in one form or another.
Note that the total computing power of all devices in the network of Bitcoin recently reached a historic high. We are talking about 114 millions of teruhisa per second that the network could squeeze 23 October this year.
According to preliminary calculations, the consumption of all miners BTC approaches that of Belgium and Finland.
Bitcoin threatens the environment
The report titled “Cryptodamages: Monetary value estimates of the air pollution and human health impacts of cryptocurrency mining” was written by two professors of Economics — Andrew Goodkind and Benjamin Jones, and Professor of Economics Robert Berenson. The document published in the publication Energy Research & Social Science.
The paper argues that, despite the financial value of mining, “the growth of energy demand for the production of a single coin can completely negate the social benefit from mining bitcoins”. That is, miners make a profit, but in the end it may be less than the amount of the damage, which causes his equipment to the environment.
It was found that in 2018 every dollar earned by miners caused damage to the health of people and climate in the amount of 0.49 dollar to the US dollar, and 0.37 in China.
This damage occurs as a result of increase in pollutants that result from burning fossil fuels. The latter is used for energy production. These substances include carbon dioxide, fine particles, nitrogen oxides and sulphur dioxide. Some of these contaminants causes an increased risk of premature death.
As a solution, experts suggest that the transition cryptocurrency for a more efficient algorithm — for example, Proof-of-Stake. However, waiting for activation PoS for Bitcoin makes no sense. Accordingly, the issue will be relevant next.
While the major project, which will switch to Proof-of-Stake, is Ethereum.
Update project Vitalik Buterin will be useful to users. Joe Lubin has promised to increase the scalability of Ethereum a thousand times in two years, that is, the network will cope with a much larger number of transactions.
In this case, the transition will be quick — it will be enough six hours. The holders of shares in the network can count on a profit of from 4.6 to 10.4 percent in ETH as a reward for staking. Read more this topic is analyzed in this article.
In addition, the mining of Ethereum using large farms of graphics cards is likely to stop. However, the owners of the equipment will move to other coins, so the level of spending power unlikely to be reduced. Until that happens, ETH mine with GPU is recommended on the bullet 2Miners.
In the coming years, developers will find a way of optimising the extraction of BTC. In the meantime, you can subscribe to our cryptcat millionairesto learn about Bitcoin even more interesting.
SUBSCRIBE TO OUR CHANNEL IN THE TELEGRAM. WAIT THE YEAR TOGETHER!