Bitcoin mining ban could worsen carbon footprint, study finds

Researchers from the non-profit organization Exponential Science and University College London noted that a Bitcoin mining ban could have unintended environmental impacts that could increase carbon emissions by up to 2.5 million tonnes per year.

In a paper titled “The Unintended Carbon Consequences of Bitcoin Mining Bans: A Paradox of Environmental Policy,” researchers write that concerns about the environmental impact of Bitcoin mining have led various governments to consider bans on cryptocurrency mining or We investigated whether it was implemented.

But these well-intentioned policies could have the opposite effect of relocating mining operations to regions with higher carbon emissions.

The research team, comprised of Dr. Paolo Tasca, Juan Ignacio Ibáñez, Aayush Ladda and Logan Alred, leveraged data from Nodiens to model the environmental impact of a Bitcoin mining ban by assessing the total carbon emissions of various countries.

Environmental Impact

The researchers highlighted that mining bans in renewable energy-rich countries such as Canada, Paraguay, El Salvador and Norway could increase emissions, undermining these countries’ environmental goals.

For example, Canada, which relies heavily on nuclear and hydroelectric power, could see a significant increase in carbon emissions of up to 2.5 million tons per year. Paraguay, El Salvador and Norway will also see emissions increase due to similar bans.

Meanwhile, the ban is likely to reduce emissions in countries that use carbon-intensive energy sources, such as Kazakhstan, China and Malaysia. Kazakhstan, which relies primarily on fossil fuels, could significantly reduce its carbon emissions by up to 3.4 million tons if it adopted these plans.

The study also looked at potential bans at the U.S. state level. Kentucky, Georgia and Nebraska noted that a ban could lead to a decrease in emissions, while New York and Texas would likely see an increase in emissions due to similar measures.

unintended consequences

Studies have shown that banning Bitcoin mining in low-emission countries could lead to a significant increase in global carbon emissions as mining operations are relocated to regions with higher carbon emissions. These results contradict the original goals of these policies.

To address these issues, researchers advocate for a more nuanced regulatory framework surrounding Bitcoin mining. They emphasize that not all Bitcoin mining is the same and that it is important to evaluate the energy sources used in mining operations before establishing regulatory policies.

Additionally, the paper urges policymakers to reconsider the effectiveness of the Bitcoin mining ban as a means to reduce global carbon emissions.

Instead, the report states that authorities should encourage the use of renewable energy in mining operations in high-carbon regions and provide incentives for the relocation of mining activities to low-carbon regions. This may better align with the goal of supporting growth while reducing carbon emissions. Cryptocurrency sector.

Margot Paez, a researcher at the Bitcoin Policy Institute, echoes this sentiment. She believes Bitcoin has the potential to facilitate a transition from existing economic systems to ones better aligned with ecological principles and ultimately help mitigate the worst impacts of climate change.