These days, there is nothing but talk around the world about climate change and sustainability. Scientists say the Earth could suffer irreversible damage if our current behaviors are not changed within the next 10 years. Therefore, many countries have set different targets to reduce greenhouse gas emissions, or even to achieve zero emissions.
However, China appears to be traveling on a completely different wavelength. Furthermore, he states that these goals may be difficult to achieve due to Bitcoin. In fact, according to a recent study, the rate of extraction of bitcoin in China is very high and this also affects the extraction of carbon. So much so that all of this could be counterproductive to the Earth's current sustainability goals.
The Bitcoin barrier to sustainability
Currently, China plans to reach a peak in carbon emissions in 2030. After that, the same country plans to reach the zero emissions target by 2060. However, China is also one of the largest countries in the world for mining of Bitcoin. In fact, 75% of all cryptocurrency mining in the world takes place in the Asian country. This is despite the fact that cryptocurrency trading is illegal in China.
This therefore greatly influences the carbon extraction in the country and consequently, the emission of greenhouse gases. Therefore, due to the current cryptocurrency boom and bitcoin's bull run, and institutional support around the world, even more mining can be expected over the next few years.
This means that as China works to reduce its carbon emissions, the cryptocurrency industry will increase them. Therefore, China's goal of reaching its carbon emissions peak in 2030 and carbon neutrality in 2060 could be at risk.
What scientific studies say
A recent study by researchers from the University of the Chinese Academy of Sciences, Tsinghua University, Cornell University and the University of Surrey supports this theory.
"Without proper interventions and feasible policies, intensive bitcoin blockchain activity in China can grow rapidly as a threat that could potentially undermine the emissions reduction effort undertaken in the country."
Mining is especially popular in places with cheaper electricity costs, such as rural villages. In 2016, bitcoin-related emissions in China had already exceeded the total emissions of countries such as the Czech Republic and Qatar.
By 2024, this figure could rise to eclipse emissions from all of Italy and Saudi Arabia. It is clear that action is needed to address what the growth of cryptocurrencies will mean for the future of the planet.
Have you ever tried to mine bitcoins? Or have you just started trading with automated software like Bitcoin system? In any case, we advise you to always invest your money carefully and take the right precautions before relying on any online broker.