- The popular cryptocurrency exchange Coinbase has commented on Bitcoin’s ecological impact and energy consumption.
- It says that although Bitcoin mining is energy-intensive, the process is largely based on renewable energy.
- It also says that cryptocurrency firms are promoting the use of renewable energy in Bitcoin mining.
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Coinbase has published a statement on Bitcoin mining’s energy consumption, arguing the process has a minimal ecological impact.
Bitcoin Relies on Renewable Energy
“Bitcoin mining is an energy-intensive process,” Coinbase wrote. “There’s no debate about that.” However, the firm says it is a myth that Bitcoin is a “significant contributor to climate change.”
To argue this point, Coinbase noted that mining companies are incentivized to find cheap energy, which usually means that they utilize renewable energy sources and excess power sources.
It noted that half of all Bitcoin mining power originates from Sichuan, China, which makes heavy use of excess hydroelectric power.
Finally, Coinbase noted the crypto industry is addressing energy consumption. Companies like Square, Greenridge, and Argo Blockchain are leading efforts to promote clean Bitcoin mining.
Other Sources Also Use Energy
Coinbase conceded that Bitcoin uses as much energy as Norway. However, it contextualized this by noting that Bitcoin secures more than twice as much economic value as Norway.
“Consider this: Norway’s GDP is around $400 billion, [but Bitcoin’s market cap] has been as high as $1 trillion,” Coinbase wrote. “It’s not easy to make a direct comparison, but the important thing to remember is that everything uses energy.”
The company also noted that wasted energy from inactive home devices is equivalent to 1.5 years of Bitcoin mining. It added that Bitcoin consumes less energy than gold mining, banks, and ATMs.
Coinbase also contested the claim that Bitcoin would use 14 times more energy than a traditional payment…