Due to the production of bitcoins, Beijing’s plans to reduce harmful emissions into the atmosphere have been threatened. According to CNBC, China accounts for 75 percent of the world’s mining. At the same time, last year, Chinese President Xi Jinping said that the country is aimed at reaching a peak in carbon dioxide emissions by 2030 and reaching carbon neutrality by 2060. But uncontrolled mining can thwart these plans.
According to scientists at the University of Cambridge, around the world, Bitcoin mining consumes about 128.84 terawatt-hours (TWh) of energy per year – more than, for example, Ukraine or Argentina. If no measures are taken, by 2024, energy consumption from mining in China will reach a maximum of 296.59 terawatt-hours, and this together will lead to the release of 130 million tons of carbon into the atmosphere.
On the other hand, the rise in the exchange price of bitcoin played into the hands of China and its digital yuan project, which is actively implemented and promoted by the country’s central bank. The main characteristic of the digital yuan will be its emission by the central bank, while the turnover of the new currency will not be based on blockchain technology. In the future, the digital yuan could become an alternative to cash.
Inner Mongolia, as well as Sichuan and Xinjiang provinces remain one of the largest regions in China in terms of cryptocurrency mining.
The fact that mining has a negative impact on the climate has already been proven. According to the analytical platform Digiconomist, the amount of electricity required to mine cryptocurrencies is comparable to what a whole country consumes in a year. Mining produces 36.95 megatons of carbon dioxide per year, similar to New Zealand. The emission of carbon dioxide that accompanies the production of electricity, in turn, leads to an increase in the greenhouse effect on the planet.