Bitcoin Pumps After White House Releases Report on Bitcoin Energy Use

Key Takeaways

  • Reports argue that global crypto mining emissions are greater than the emissions of many individual countries. 
  • United States crypto production represents between 0.2% and 0.3% of global greenhouse gas emissions and between 0.4% and 0.8% of domestic emissions.

In recent days, the United States has become increasingly vocal about climate change, crypto mining, and its implications on the environment.

The White House has now released a report titled “Climate and energy implications of crypto assets in the United States,” detailing the effects of crypto mining on the environment.

The report notes that global crypto mining emissions are greater than the emissions of many individual countries and equivalent to the global emissions from all barges, tankers, and other ships on inland waterways.

 “As of August 2022, published estimates of the total global electricity usage for crypto-assets are between 120 and 240 billion kilowatt-hours per year, a range that exceeds the total annual electricity usage of many individual countries” the report reads.

Further, the report urged crypto miners to work on minimizing greenhouse gas emissions. The report also calls on federal agencies such as the Environmental Protection Agency and the Department of Energy to work with state/local officials to develop standards for the industry’s impact on the environment.

Further, the intensity and source of energy that goes into it, noise pollution, water usage as well as how to build carbon-free energy to balance out crypto mining’s consumption.

The report points out that United States crypto production represents between 0.2% and 0.3% of global greenhouse gas emissions and between 0.4% and 0.8% of domestic emissions.

The White House report also highlights that mining crypto produces planet-warming emissions primarily by burning coal, natural gas, and other fossil fuels to generate electricity.

In 2022, crypto mining produced between 110 and 170 million metric tons on carbon pollution across the world and roughly 25 to 50 million metric tons in the U.S. alone, the report added.

The process includes producing electricity by purchasing it from the power grid or by producing/disposing of computers and mining infrastructure.

The latest White House report follows U.S. President Joe Biden’s executive order in March that called on the government to examine the risks/ benefits of cryptocurrencies.

Biden has also pledged to reduce U.S. emissions from 2005 levels at least in half by 2030 and achieve net-zero emissions by the year 2050.

Saniya Raahath
Saniya Raahath

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