An Innovative Criterion in Evaluating Bitcoin's Environmental Impact

Mankala, Sachith; Bansal, Utkarsh; Baker, Zachary K.

doi:10.2139/ssrn.4261198

Cited by 2 publications

(2 citation statements)

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“…d) Other impacts: Bitcoin is criticized as well for the electronic waste (e-waste) that mining might produce [40]. Notably, De Vries and Stoll [41] provide the most pessimistic estimate of 30.7 metric kilotons (0.07% of all e-waste [25]).…”

Section: Average Emissions Factorsmentioning

confidence: 99%

“…Although there are still some imperfections in the dissemination of market information, it displays an increasingly large number of buyers and sellers. Furthermore, there are non-increasing returns to scale (in fact, scale may have decreasing returns if fear of a 51% attack is triggered), there are little barriers to entry (apart from the time to get a grid connection) or exit and there is near-perfect factor mobility (as shown by the China ban experience and seasonal pre-ban migrations within China [3], [19], [40]). Empirically, the Bitcoin network also seems to follow the Pareto Principle or 80/20 rule, in another indication that it approximates a perfect competition state [19] (see also [11]).…”

Section: Second-order Game Theory: a Trend Towards A Perfect Competit...mentioning

confidence: 99%

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Can Bitcoin Stop Climate Change? Proof of Work, Energy Consumption and Carbon Footprint (SoK)

Ibañez¹,

Freier

2023

SSRN Journal

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Section: Average Emissions Factorsmentioning

confidence: 99%

Section: Second-order Game Theory: a Trend Towards A Perfect Competit...mentioning

confidence: 99%

Can Bitcoin Stop Climate Change? Proof of Work, Energy Consumption and Carbon Footprint (SoK)

Ibañez¹,

Freier

2023

SSRN Journal

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Bitcoin’s Carbon Footprint Revisited: Proof of Work Mining for Renewable Energy Expansion

Ibañez

Freier

2023

Challenges

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While blockchain and distributed ledger technology offer immense potential for applications in transparency, security, efficiency, censorship resistance, and more, they have been criticized due to the energy-intensive nature of the proof of work consensus algorithm, particularly in the context of Bitcoin mining. We systematically explore the state-of-the-art regarding the relationship between Bitcoin mining and grid decarbonization. We specifically focus on the role of flexible load response through proof of work mining as a potential contributor to renewable energy penetration and net decarbonization of the energy grid. The existing literature has not comprehensively examined this area, leading to conflicting views. We address the gap, analyzing the capabilities and limitations of Bitcoin mining in providing flexible load response services. Our findings show that renewable-based mining could potentially drive a net-decarbonizing effect on energy grids, although key adaptations in mining practices are needed to fully realize this potential. Overall, the paper suggests a re-evaluation of the environmental impact of Bitcoin mining, highlighting its potential role as a facilitator for renewable energy expansion, and decarbonization more broadly.

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An Innovative Criterion in Evaluating Bitcoin's Environmental Impact

Cited by 2 publications

References 0 publications

Can Bitcoin Stop Climate Change? Proof of Work, Energy Consumption and Carbon Footprint (SoK)

Can Bitcoin Stop Climate Change? Proof of Work, Energy Consumption and Carbon Footprint (SoK)

Bitcoin’s Carbon Footprint Revisited: Proof of Work Mining for Renewable Energy Expansion

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