Crypto Miners Add Fuel to the Climate Crisis

The global crypto industry, led by Bitcoin, is becoming a rising concern for environmentalists. Earthjustice, a prominent environmental organization, recently published its findings about the sector’s burgeoning energy demands, according to thecoinrepublic.

Between 2017 and 2022, Bitcoin’s daily energy consumption skyrocketed from 1 GW to 11 GW. The US government’s Office of Science and Technology Policy (OSTP) reveals crypto mining’s massive footprint, accounting for 1.7% of America’s yearly energy use. After China‘s 2021 crackdown on crypto mining, much of the industry shifted to the US, which now dominates with 38% of the global energy consumed by crypto miners.

Earthjustice’s extensive research found over 140 crypto mining operations. Many of these use coal, significantly harming the environment by releasing carbon. The report paints a grim picture, highlighting instances where emissions soared after fossil fuel plants were purchased by crypto companies. Furthermore, certain companies use power generated from oil and gas combustion. This practice can inadvertently lead to re-operating abandoned wells. Rather than ceasing the harmful methane flaring, some miners utilize its electricity generation potential, further contributing to the environmental dilemma.

The organization’s analysis also presents some alarming figures. In 2021, US-based Bitcoin miners were responsible for releasing up to 76 Million tonnes of greenhouse gases. The surge in electricity demand by the crypto sector is a significant concern for Earthjustice. Texas‘ grid operator, ERCOT, projects a 33 GW addition by 2026 due to the crypto industry.

While many US coal plants were retired because of renewable energy’s affordability, they’ve been resurrected by crypto miners. These miners, driven by short-term profits, find the low cost of these coal plants tempting. Carbon emissions, however, aren’t uniform across operations. Depending on the location, emissions can vary. In Texas, for example, a 300 MW data center can release up to 1.6 Million tons of greenhouse gases, while North Dakota might witness 2 Million tons.

Environmentalists are keenly observing the crypto sector’s next moves, urging for more sustainable practices in a world increasingly threatened by climate change.