Concerns about the environmental effects of Bitcoin mining have been ongoing, but recent findings show a more positive outlook.

Even though Bitcoin is a virtual currency, the process of creating it consumes a significant amount of energy. There were concerns in the past that Bitcoin mining alone could contribute significantly to global warming, potentially surpassing the critical 2-degree Celsius mark. While all cryptocurrencies consume energy during mining, Bitcoin stands out for its considerable energy requirements. However, recent studies reveal that the environmental impact of Bitcoin mining is not as extensive as previously feared.

The Bitcoin Energy Consumption Index compiled by Digiconomist previously estimated that Bitcoin mining produced 34.73 Megatonnes of carbon dioxide annually, putting it on par with the carbon footprint of an entire nation like Denmark. A more recent study conducted on the data from 2018 indicates that the actual carbon output is around 17.29 Megatonnes, significantly lower than the initial estimation. Other studies have also reported figures that align more closely with this reduced estimate.

“Mining” is the procedure through which new units of a cryptocurrency are generated. This process involves using specialized hardware to solve intricate mathematical problems, which in turn demands a substantial amount of electricity.