Bitcoin network produces as much electronic waste as the Netherlands

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According to a new study by researchers at MIT and the Netherlands’ Central Bank, the amount of e-waste generated in a single Bitcoin transaction is the equivalent of throwing two iPhones in the trash.

The study, published in Science Direct, estimates that the entire Bitcoin network produces up to 30.7 meters and kilotons of electronic waste each year. This is comparable to the amount of small waste of IT and telecommunications equipment generated in countries like the Netherlands.

Last year, the network processed 112.5 million transactions, the researchers said. This means that each transaction produced an average of 272g of electronic waste (the weight of two iPhone 12 Minis).

The study estimates that Bitcoin mining can generate up to 64.4 meters and kilotons of e-waste per year at the record price levels seen in early 2021.

The reason for this large amount of electronic waste is that mining (the process of generating new Bitcoins) uses special, single-use computer chips called Application Specific Integrated Circuits (ASICs). They have no other purpose than to run algorithms that protect the Bitcoin network.

In general, each ASIC miner is designed to mine a particular digital currency. In other words, Bitcoin ASIC miners can only mine Bitcoin. Researchers say ASICs become obsolete about every 1.3 years and need to be replaced.

All the miners participating in the Bitcoin network compete for rewards in order to create new blocks in the blockchain that underlies Bitcoin. The probability of generating new blocks is proportional to the mining machine’s share of the total computing power used for mining.

Therefore, efficient miners must constantly replace their ASICs with new chips that are efficient enough for profitable mining. Machines that can perform more calculations per unit of energy are considered to be more cost effective.

According to the University of Cambridge Bitcoin Energy Consumption Index, Bitcoin mining consumes around 100 terawatt hours per year, and consumption increases as the value of Bitcoin increases.

According to a recent report by BloombergThe total power consumed by the Bitcoin network this year has already exceeded the 2020 consumption level by around 67 terawatt hours (TWh). It should consume 91 TWh of energy by the end of the year. It is the same as Pakistan.

The extraction process certainly has a negative impact on the environment.

In 2018, Jon Truby, assistant professor at the Center for Law Development at the University of Qatar, reported that failure to reduce the energy consumption of these technologies could prevent some countries from meeting their climate change obligations. . That is to say. Paris Agreement.

The report is new to reduce demand from users of pollution control technologies, miners and mining chipmakers, and to provide incentives to encourage developers to create blockchains that consume less energy or are carbon neutral. Recommended taxes, fees or restrictions.


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