The cryptocurrency Bitcoin currently has a CO2 footprint that is twice as big as Switzerland’s, according to an evaluation by the crypto portal Digiconomist. This is due to the energy consumption of the blockchain technology that underpins the Bitcoin network.
The Bitcoin network operates on blockchain technology, which involves validating transactions on the blockchain in a secure and tamper-proof manner. The system currently uses a process called “Proof of Work,” where complex cryptographic puzzles must be solved. This process, known as “mining,” involves competition among players to solve these puzzles and write the next entry in the blockchain, receiving Bitcoin as a reward. However, this process consumes a significant amount of electricity, much of which comes from fossil sources, contributing to the high CO2 emissions.
According to Digiconomist, a single Bitcoin transaction currently produces as much CO2 as watching around 112,000 hours of YouTube videos or processing 1.5 million credit card transactions. The current price of Bitcoin is around $67,300, having reached a record high of nearly $74,000 in mid-March. This year’s surge in the price of Bitcoin has outperformed traditional assets such as global stock markets or gold, driven in part by high inflows into Bitcoin exchange-traded funds in the USA.
Bitcoin proponents anticipate continued growth in demand for cryptocurrencies, while critics argue that Bitcoin lacks intrinsic value and is purely speculative. The current month is experiencing a “Halving” event, which occurs every four years and halves the new supply of Bitcoin tokens. Some market observers view this event as a positive factor for a price increase
