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A single Bitcoin transaction generates the same amount of electronic waste as throwing two iPhones in the trash, according to new analysis from economists at the Dutch Central Bank and the Massachusetts Institute of Technology.
While Bitcoin’s carbon footprint has been well studied, less attention has been paid to the massive change in the computers used to mine cryptocurrency.
Specialized computer chips called ASICs are sold for no other purpose than to run the algorithms that secure the Bitcoin network, a process called “bitcoin mining” that rewards those who participate in recording Bitcoin transactions. But since only the newest chips are energy efficient enough to operate profitably, efficient miners must constantly replace ASICs with newer, more powerful ones.
“Bitcoin miners are only 1.29 years old,” write researchers Alex de Vries and Christian Stoll in the article on the growing e-waste problem associated with bitcoin mining published in Resources, Conservation and Recycling . .
As a result, “We estimate that the entire Bitcoin network currently recycles 30.7 tonnes of equipment per year. This number is comparable to the amount of small telecom equipment waste produced by a country like the Netherlands.” , added the researchers.
Bitcoin
In 2020, the Bitcoin network processed 112.5 million transactions (up from 539 billion processed by traditional payment service providers in 2019), according to economists, meaning that each individual transaction “equates to at least 272 grams of electronic waste ”. And that’s the weight of two iPhone 12 devices.
The reason that e-waste is such a problem for cryptocurrencies is that unlike most computing devices, ASIC chips have no other use than mining bitcoin, and if they cannot not be used to mine bitcoin profitably, they will have no future purpose.
The researchers note that it is theoretically possible that these devices regain their ability to operate profitably at a later point in time, if Bitcoin prices suddenly rise and mining revenues rise.
They add: “However, there are usually many factors that prevent significantly extending the life of mining equipment … Storage of mining equipment costs money, and the longer it is stored, the less likely it is to be. profitable. “
Bitcoin mining (Reuters)
The research authors also warn that the e-waste problem is likely to increase if the price of Bitcoin continues to rise, as this will further stimulate investment and replacement of ASIC hardware.
The research paper concluded that if the company wanted to reduce the e-waste problem, it would have to replace “the entire Bitcoin mining process with a more sustainable alternative.”
Other alternatives to bitcoin have been less successful in reducing their environmental impact. Chia, a cryptocurrency based on a “time and place” algorithm, has been accused of causing a shortage of hard drives, a type of storage medium common in fast computers.
“Instead of just wasting electricity, Chia is devouring SSDs at an astonishing rate and has completely destroyed the large hard drive market,” said David Gerrard, a cryptocurrency expert.
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