There’s a lot of chatter out there that Bitcoin mining and the rest of the digital asset mining.
It is said that this mining is taking place in the world is creating a huge carbon footprint.
It certainly depends on who you ask for which answer you will get.
To say global Bitcoin mining uses as much energy and gives off as much carbon dioxide emissions as a small country is correct.
However, we must look at several key aspects of energy consumption for mining digital assets including the source of the energy used.
Many of the largest mines in China and other countries rely on renewable energy more than coal.
This includes hydropower from dams as well as natural gas leaks captured from oil fields.
Traditional Banking and Gold Mining
Comparing digital asset mining to the existing banking system, paper currency minting and gold mining, we can see that Bitcoin mining uses far less energy and produces less CO2 than the others.
We must take into consideration what resources are required to create, support, and sustain them.
Bitcoin uses minimal amounts of people and physical structures to support mining.
The banking system, being the oldest and largest, has a much larger infrastructure requiring more energy resources and producing a larger carbon footprint.
The chart below (Figure 1) contains data from 2014 however the same trend applies today.
Figure 1: An Order-of-Magnitude Estimate of the Relative Sustainability of the Bitcoin Network
BSV vs The Others
Looking at Bitcoin and comparing to other digital assets based on CO2 emissions and the amount of energy used for hashing, BSV is the overall greenest.
Less emissions and lower energy usage make it one of the cleanest on the blockchain.
We know that having the ability to scale while using less energy is desirable by all. BSV is the only digital asset that can do both.
Image Courtesy of: Coincarboncap.com
What Does it Mean?
Green energy is being used by the top five mining farms to some extent and is being sought for use at higher levels.
The cheapest cost for power for mining today is hydropower.
Solar power does not provide enough energy to run mining equipment 24 hours a day to pay for the high cost of the equipment needed to mine.
It can be used to operate mining equipment that has reached a return on investment and only needs to be operate part- time
Mining pools are actively seeking alternative green energy that provides the lowest cost Bitcoin transactions.