A study conducted by United Nations experts indicates a direct relationship between electricity consumption, hydrocarbon emissions and the value of the first cryptocurrency.
UN specialists conducted a study of the level of electricity consumption and environmental pollution based on data from 76 countries where mining of digital assets actively developed from 2020 to 2021. The study showed: when the BTC reached its historical maximum of $69,000, electricity consumption by mining companies increased many times and reached a level of 173.42 TWh.
“The 400% increase in the price of Bitcoin from 2021 to 2022 has led to a 140% increase in energy consumption across the global BTC mining network,” the global organization said in a report.
More than 67% of the electricity that mining companies consumed came from burning fossil resources, UN data says. Hydropower supplied just 16% of the total electricity demand in the global Bitcoin mining network. Nuclear, solar, wind and other alternative energy sources provided the mining industry with 9%, 2% and 5% respectively.
The ten largest Bitcoin mining countries (China, USA, Kazakhstan, Russia, Malaysia, Canada, Germany, Iran, Ireland and Singapore) accounted for up to 94% of the carbon footprint.
Earlier, Salvadoran startup Volcano Energy announced a partnership with mining company Luxor Technologies to launch Lava Pool, the first local Bitcoin mining pool using renewable energy.
