The cryptocurrency Bitcoin is notorious for its high carbon footprint, according to an evaluation by the crypto portal Digiconomist. The Bitcoin network currently produces 90.93 million tons of CO2 annually, which is twice as much as Switzerland’s greenhouse gas emissions.
The reason behind this high carbon footprint is the energy-intensive nature of blockchain technology, on which the Bitcoin network relies. This technology uses a process known as “Proof of Work” to validate transactions and mine new crypto coins. To do this, miners compete to solve complex cryptographic puzzles and earn rewards, which consumes a significant amount of electricity, most of which comes from fossil sources.
A single Bitcoin transaction produces as much CO2 as watching 112,000 hours of YouTube videos or processing 1.5 million credit card transactions. Despite this high carbon footprint, demand for cryptocurrencies continues to grow at record highs in recent months, outperforming traditional assets such as global stock markets or gold. However, critics argue that Bitcoin has no intrinsic value and is purely speculative.
As if the environmental impact wasn’t enough, Bitcoin is currently experiencing a “Halving” event where the number of new tokens issued will be cut in half every four years. While some experts see this event as a potential catalyst for price increases, others warn of significant price fluctuations in the volatile cryptocurrency market.
