Life Cycle Assessment of Bitcoin Mining

Area of Science:

• Environmental Science
• Computer Science
• Energy Policy

Background:

• The environmental impact of Bitcoin mining, particularly its energy consumption and carbon footprint, is a subject of ongoing debate.
• Previous assessments have been hindered by a lack of robust methodologies and accurate data.

Purpose of the Study:

• To estimate the environmental impact of Bitcoin mining using a comprehensive Life Cycle Assessment (LCA) methodology.
• To identify the key drivers of Bitcoin's environmental footprint and project future trends.

Main Methods:

• Application of the established Life Cycle Assessment (LCA) methodology.
• In-depth analysis of factors influencing the Bitcoin mining network's environmental impact.
• Data collection on energy consumption, carbon emissions, and mining equipment characteristics.

Main Results:

• In 2018, the Bitcoin network consumed 31.29 TWh, with a carbon footprint of 17.29 MtCO2-eq, placing it at the lower end of previous estimates.
• Geographical distribution of miners and mining equipment efficiency were identified as primary impact drivers.
• The lifecycle stages of mining equipment (production, end-of-life) contributed minimally to the overall environmental impact.

Conclusions:

• Despite an expected increase in hashrate, the energy consumption and environmental footprint per terahash (TH) are projected to decrease.
• The study provides a more accurate assessment of Bitcoin's environmental impact, highlighting the importance of miner location and hardware efficiency.