Bitcoin Boom Sparks Environmental Alarm: Scientists Call for Urgent Action
Bitcoin mining — the process by which new bitcoins are created — consumes between 155 and 172 terawatt-hours of electricity each year, making up about 0.4% of global energy demand, according to Polytechnique Insights. This comes as Bitcoin recently surpassed the $100,000 mark for the first time.
That energy use translates to around 96 million tonnes (105 million tons) of carbon dioxide annually — nearly a quarter of France’s yearly emissions. Mathematician Jean-Paul Delahaye describes Bitcoin’s blockchain protocol as inherently wasteful, requiring computers to perform the same calculations thousands of times to ensure security.
However, bitcoin analyst and climate-tech investor Daniel Batten argues that mining’s high energy demands have spurred growth in renewable energy. While he acknowledges that energy used for mining could be redirected elsewhere, he points out that mining can help make new green energy projects financially viable by providing an immediate buyer.
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Why It Matters
Bitcoin mining is also under scrutiny for its massive water use and land footprint. A 2024 study in Cell Reports Sustainability cited by Polytechnique Insights claims mining operations consume hundreds of billions of liters of water annually for cooling and occupy around 1,870 square kilometers of land. Batten disputes this study’s conclusions, arguing it doesn’t reflect the broader scientific consensus.
The mining industry underwent a major shift in 2021, moving from China — which banned mining — to Kazakhstan and the U.S. Kazakhstan’s cheap coal power made it a temporary mining hub, but the strain on its electric grid led to miners being cut off by 2022. The move illustrated the industry's tendency to chase the cheapest, often dirtiest, power sources. As a result, the share of renewable energy powering Bitcoin mining dropped from 41.6% to 25.1%.
