Bitcoin Mining: Researchers find it environmentally unsustainable, threat to future energy

Taken as a share of the market price, the climate change impacts of mining the digital cryptocurrency Bitcoin is more comparable to the impacts of extracting and refining crude oil than mining gold, according to an analysis published in Scientific Reports by researchers at The University of New Mexico.

The authors suggest that rather than being considered akin to ‘digital gold’, Bitcoin should instead be compared to much more energy-intensive products such as beef, natural gas, and crude oil.

“We find no evidence that Bitcoin mining is becoming more sustainable over time,” said UNM Economics Associate Professor Benjamin A. Jones. “Rather, our results suggest the opposite: Bitcoin mining is becoming dirtier and more damaging to the climate over time. In short, Bitcoin’s environmental footprint is moving in the wrong direction.”

In December 2021, Bitcoin had an approximately 960 billion US dollars market capitalization with a roughly 41 percent global market share among cryptocurrencies. Although known to be energy intensive, the extent of Bitcoin’s climate damages is unclear.

Researchers at The University of New Mexico find digital cryptocurrency Bitcoin is more comparable to the impacts of extracting and refining crude oil than mining gold./CREDIT:
University of New Mexico

Jones and colleagues Robert Berrens and Andrew Goodkind present economic estimates of climate damages from Bitcoin mining between January 2016 and December 2021. They report that in 2020 Bitcoin mining used 75.4 terawatt hours of electricity (TWh) – higher electricity usage than Austria (69.9 TWh) or Portugal (48.4 TWh) in that year.

“Globally, the mining, or production, of Bitcoin is using tremendous amounts of electricity, mostly from fossil fuels, such as coal and natural gas. This is causing huge amounts of air pollution and carbon emissions, which is negatively impacting our global climate and our health,” said Jones. “We find several instances between 2016-2021 where Bitcoin is more damaging to the climate than a single Bitcoin is actually worth. Put differently, Bitcoin mining, in some instances, creates climate damages in excess of a coin’s value. This is extremely troubling from a sustainability perspective.”

The authors assessed Bitcoin climate damages according to three sustainability criteria: whether the estimated climate damages are increasing over time; whether the climate damages of Bitcoin exceeds the market price; and how the climate damages as a share of market price compare to other sectors and commodities.

They find that the CO2 equivalent emissions from electricity generation for Bitcoin mining have increased 126-fold from 0.9 tonnes per coin in 2016, to 113 tonnes per coin in 2021. Calculations suggest each Bitcoin mined in 2021 generated 11,314 US Dollars (USD) in climate damages, with total global damages exceeding 12 billion USD between 2016 and 2021. Damages peaked at 156% of the coin price in May 2020, suggesting that each 1 USD of Bitcoin market value generated led to 1.56 USD in global climate damages that month.

“Across the class of digitally scarce goods, our focus is on those cryptocurrencies that rely on proof-of-work (POW) production techniques, which can be highly energy intensive,” said Regents Professor of Economics Robert Berrens. “Within broader efforts to mitigate climate change, the policy challenge is creating governance mechanisms for an emergent, decentralized industry, which includes energy-intensive POW cryptocurrencies. We believe that such efforts would be aided by measurable, empirical signals concerning potentially unsustainable climate damages, in monetary terms.”

Finally, the authors compared Bitcoin climate damages to damages from other industries and products such as electricity generation from renewable and non-renewable sources, crude oil processing, agricultural meat production, and precious metal mining. Climate damages for Bitcoin averaged 35% of its market value between 2016 and 2021. This share for Bitcoin was slightly less than the climate damages as a share of market value of electricity produced by natural gas (46%) and gasoline produced from crude oil (41%), but more than those of beef production (33%) and gold mining (4%).

The authors conclude that Bitcoin does not meet any of the three key sustainability criteria they assessed it against.  Absent voluntary switching away from proof-of-work mining, as very recently done for the cryptocurrency Ether, then potential regulation may be required to make Bitcoin mining sustainable.

Also Read:

Where do high-energy particles that endanger satellites, astronauts, airplanes come from?

Asian tiger mosquito, native to warm climate is now gaining ground in Illinois’s harsh winter

Soon new material to replace rogue plastic; It biodegrades in ocean water within 4 weeks

Fast magnetic writing of data

For almost seventy years now, magnetic tapes and hard disks have been used for data storage in computers. In spite of many new technologies that have been developed in the meantime, the controlled magnetization of a data storage medium remains the first choice for archiving information because of its longevity and low price. As a means of realizing random access memories (RAMs), however, which are used as the main memory for processing data in computers, magnetic storage technologies were long considered inadequate. That is mainly due to its low writing speed and relatively high energy consumption.

Pietro Gambardella, Professor at the Department of Materials of the ETH Zurich, and his colleagues, together with colleagues at the Physics Department and at the Paul Scherrer Institute (PSI), have now shown that using a novel technique, magnetic storage can still be achieved very fast and without wasting energy.

Magnetization inversion without coils

In traditional magnetic data storage technologies, tape or disk data carriers coated with a cobalt alloy are used. A current-carrying coil produces a magnetic field that changes the direction of magnetization in a small portion of the data carrier. Compared to the speeds of modern processors, this procedure is very slow, and the electric resistance of the coils leads to energy loss. It would, therefore, be much better if one could change the magnetization direction directly, without taking a detour via magnetic coils.

In 2011, Gambardella and his colleagues already demonstrated a technique that could do just that: An electric current passing through a specially coated semiconductor film inverted the magnetization in a tiny metal dot. This is made possible by a physical effect called spin-orbit-torque. In this effect, a current flowing in a conductor leads to an accumulation of electrons with opposite magnetic moment (spins) at the edges of the conductor. The electron spins, in turn, create a magnetic field that causes the atoms in a nearby magnetic material to change the orientation of their magnetic moments. In a new study the scientists have now investigated how this process works in detail and how fast it is. The results were recently published in the scientific journal Nature Nanotechnology.

Spatial resolution with X-rays

In their experiment, the researchers inverted the magnetization of a cobalt dot having a diameter of just 500 nanometres using electric current pulses that flowed through an adjacent platinum wire. During this process, they exposed the cobalt dot to strongly focused X-rays that were created at the Swiss Light Source of PSI. The X-rays scanned the dot successively with a spatial resolution of 25 nanometres. How strongly the dot absorbed the X-rays at a particular point depended on the local magnetization direction.

«In this way we obtained a two-dimensional image of the magnetization inside the cobalt dot and could watch as the current pulse gradually changed it», explains Manuel Baumgartner, lead author of the study and doctoral student in Gambardella’s research group.

The researchers were thus able to observe that the magnetization inversion happened in less than one nanosecond – considerably faster than in other recently studied techniques. «Moreover, we can now predict on the basis of the experimental parameters when and where the magnetization inversion begins and where it ends», Gambardella adds. In other techniques the inversion is also driven by an electric current, but it is triggered by thermal fluctuations in the material, which causes large variations in the timing of the inversion.

Possible application in RAMs

The researchers sent up to a trillion inversion pulses through the cobalt dot at a frequency of 20 MHz without observing any reduction in the quality of the magnetization inversion. «This gives us the hope that our technology should be suitable for applications in magnetic RAMs», says Gambardella’s former postdoc Kevin Garello, also a lead author of the study. Garello now works at the IMEC research centre in Leuven, Belgium, investigating the commercial realization of the technique.

In a first step, the researchers would now like to optimize their materials in order to make the inversion work even faster and at smaller currents. One additional possibility is to improve the shape of the cobalt dots. For now, those are circular, but other shapes such as ellipses or diamonds could make the magnetization inversion even more efficient, the researchers say. Magnetic RAMs could, among other things, make the loading of the operating system when booting a computer obsolete – the relevant programmes would remain in the working memory even when the power is switched off.