How much carbon is emitted by bitcoin, it will be clear when you do the math

How much carbon dioxide (CO2) does Bitcoin actually produce? Should it be feared?

How much carbon is emitted by bitcoin, it will be clear when you do the math

Perhaps because too many people are criticizing Bitcoin for not being environmentally friendly, FTX founder SBF tweeted a mathematical post stating, “How much carbon dioxide (CO2) does Bitcoin actually create? Should it be worried? As of press time, SBF’s tweet was also publicly supported by the exchange BitMEX.

How much does non-renewable energy account for the cost of mining?

SBF says suppose we spend $X in transaction fees on bitcoin or ethereum. (or other proof-of-work PoW cryptocurrencies). X goes through the on-chain bidding and will end up in the hands of miners. In an efficient market, people will continue to participate as long as bitcoin or ethereum mining remains profitable.

So if people pay $X, then the miner’s cost spend should be less than X. Thus, the SBF assumes that

The miner’s fee Gas Fee is approximately equal to (mining cost * 3/2)

SBF divides the mining cost into 1/2 for electricity and 1/2 for equipment, so 3/4 of the mining cost will be used to pay for electricity.

Miner’s Fee Gas Fee = (mining cost * 1.5) = {(1/2 mining cost) + (1/2 mining cost)} * 3/2

Power Expense = (1/2 mining cost)*3/2 = 3/4 mining cost

Then he said that 1/3 of the mines are operated by renewable energy, which means that there will be 2/3 of the electricity usage that will be used for non-renewable energy. The cost of electricity is about $0.05/kWh. Each kilowatt-hour (kWh) produces 0.0004 tons of carbon dioxide.

How bad is carbon dioxide?

SBF says that according to Cool Earth’s calculations, about $1 USD will reduce carbon emissions by 1 ton.

Settlement: Balancing carbon emissions from mining is only a low cost

SBF finally makes a deduction to his calculation, Gas Fee spent X dollars, 2/3 will be spent on mining cost, 3/4 on electricity, 2/3 of which is non-renewable energy, cost about $0.05/kWh, each kWh produces 0.0004 tons of CO2, it costs $1 per ton to reduce carbon emissions.

2/3 * 3/4 * (2/3) / 0.05 * 0.0004 * 1 = 0.0026

SBF says this result tells us that if you spend $1 on top of the fee, you only have to donate $0.0026 to Cool Earth to solve the carbon emissions problem. He also tagged Musk, the founder of Tesla, who criticized Bitcoin for causing the burden of carbon emissions.

How much carbon is emitted by bitcoin, it will be clear when you do the math

Posted by:CoinYuppie,Reprinted with attribution to:
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

Like (0)
Donate Buy me a coffee Buy me a coffee
Previous 2021-05-21 14:25
Next 2021-05-21 14:29

Related articles