Economics professors at UNM decode high cost of Bitcoin mining

the researchers discovered that for every $1 of Bitcoin value created in 2018, around $0.49 in human health and climate damages were sustained, often exceeding the currency’s market value. These damages encompassed emissions from fossil fuel power plants, air pollution, and climate change effects. Updated statistics reveal that damages now equal about 74% of the coin’s generated value.

The book’s comparison of Bitcoin to other industries uncovers that its environmental impact rivals that of crude oil, far surpassing commodities like gold. Described as “digital crude” rather than “digital gold,” Bitcoin’s environmental footprint extends beyond carbon emissions to issues like e-waste, land and water usage, and noise pollution. Recommendations for environmentally sustainable practices within the cryptocurrency industry are also explored.

The authors emphasize that their work is not anti-Bitcoin but rather critical of its energy-intensive proof of work process used in mining. They note that alternative cryptocurrencies employ more energy-efficient production methods. The aim is to shed light on Bitcoin’s significant environmental footprint in hopes of inspiring societal action.

Lead author Jones, along with Goodkind and Berrens, draw on their backgrounds in economics, pollution, public health, and environmental economics to bring a comprehensive perspective to the research. Their work has been featured in reputable publications globally, underscoring the relevance and urgency of their findings.

The study reveals the tangible costs associated with Bitcoin mining, urging readers to consider the broader implications of digital currencies. By examining cryptocurrencies’ ecological impacts, the authors lay the foundation for discourse and action towards a more sustainable future. Through their collaboration and research, the UNM Economics professors offer a critical analysis of Bitcoin mining’s environmental ramifications, ultimately aiming to encourage responsible practices within the industry.