Now that we have a better idea of what energy Bitcoin uses, we can question the ecological relevance of keeping your money in fiat currencies.
The 4,981 TWh annual consumption of the banking system consists of
3,420 TWh consumed for employee transportation and 1,561 TWh consumed for its operation (data centers, ATMs, offices, etc.).
Based on my research, it is very challenging to determine with a minimum of precision the amount of CO
2 emitted by the 46 million employees of the banking system. So, I choose not to include an estimate that could bias our judgment. (If you have a source or the ability to calculate their CO
2 emissions yourself, please contact me, and I will update this document.)
However, we can estimate the greenhouse gas emissions of the 1,561 TWh required for its operation.
According to the
International Energy Agency,
1 kWh emits an average of
475g de CO2 per year worldwide, with total global CO
2 emissions at
36.3 Gt in 2021.
This means that
the banking system emits 0.74 Gt of CO2 per year, or 2% of global emissions (without considering employee transportation).
Considering that only 47.4% of Bitcoin's energy, or 80 TWh, comes from fossil fuels, we can estimate
its CO2 emissions at 0.038 Gt per year, or 0.1% of global emissions.So, without taking into account employee commuting or the banking system's emissions,
Bitcoin emits 19.47 times less CO2 than the banking system.But that's not all!
When you deposit your money in a bank, it's not just sitting there waiting for you to spend it. It is used and reinvested in many different assets, including companies that pollute heavily.
For example, in 2018, the activities of BNP Paribas, Crédit Agricole, Société Générale, and BPCE emitted more than
2 billion tons of CO2 equivalent, which is 4.5 times France's emissions. So, 4,000€ in one of these banks emitted
2 tCO2 per year.
As a reference, 2 tons of CO2 per year per person is the limit set by the Paris Agreement in 2015.
Today, Bitcoin's market capitalization is 1,25 trillion euros, which means that
4,000€ in Bitcoin emits 0.121 tCO2 per year, which is 16.53 times less than in one of the four largest French banks.
In a scenario where Bitcoin reaches a total capitalization of 10 trillion euros, consuming 706 TWh per year and maintaining the same proportion of renewable energy in its operation,
Bitcoin would emit 0.159 Gt of CO2 per year, which is six times more than today and would represent 0.44% of global emissions if they do not increase.
In this projection,
4,000€ in Bitcoin would emit only 0.0636 tCO2 per year, which is 3.3 times less than today.
It is now established that €1 invested in Bitcoin can have positive environmental impacts. In fact,
€1 sold in Bitcoin allows you to save 30.4g of CO2 per year. 30.4g of CO2 is on average equivalent to driving
0.14 km by car.
Finally, what is important to understand with this last figure is that
we are completely opposite to what these press articles want us to believe.Holding a portion of your capital in Bitcoin will protect you from censorship, allow you to be the real owner of your money, transfer value to the other side of the world at a lower cost and in minutes (or even seconds), all while supporting the development of renewable energy.
A portion of the energy consumed by a Bitcoin mining computer is used to secure the blockchain. But the majority of this energy is simply transformed into another form of energy: heat.
The energy we use to heat our buildings is one of the main sources of greenhouse gas emissions and plays a central role in decarbonization initiatives.
On the other hand, managing ventilation is one of the main challenges for computer designers because overheating can lead to device damage.
Humanity needs access to hot water and habitable environments even in winter, while Bitcoin miners need to dissipate the heat produced by their computers to ensure their proper operation.
Why not consider synergy between these two needs?
The most widely used mining computer today is the Antminer S19, followed by the older Antminer S9.
In short, replacing a radiator with a Bitcoin miner as heating would heat your home while generating passive income and reducing your electricity or gas bill.
If, in the future, buildings, houses, offices were heated through Bitcoin mining, it would double the utility of the consumed energy. Thus, the carbon footprint of the energy used, regardless of its source, would be halved, used to secure the Bitcoin network and heat buildings simultaneously.
In a hypothetical scenario where Bitcoin mining would be exclusively used as a heat generator, its carbon footprint would be zero, as the entire network would then be supported by energy solely used for heat generation.
With the extended lifespan of ASICs, the price paid for heating could be covered. If the profitability of our ASICs drops to -50€ per year, it is still profitable to use them if our traditional heating systems cost us 50€ or more under normal circumstances.
Here are some examples of achievements:
-
DCX Immersion Mining, which heats homes through mining ;
-Micheal Schmid alias
Schnitzel, who heats an entire house (heating, water, and jacuzzi) through mining.
These examples demonstrate that it is possible to harness this heat, and it takes little effort for this practice to become widespread.
In a world where Bitcoin mining is widely adopted, one can envision many houses, residences, buildings, and offices equipped with Bitcoin miners heating them either entirely or partially.
This would not only make the Bitcoin blockchain more decentralized but also enable these properties to be heated for free or at a lower cost thanks to mining revenues.
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