Bill Gates has recently voiced his concerns on Bitcoin electricity consumption and says it is not a great climate thing. He is a self-proclaimed Bitcoin skeptic. As Bitcoin surge touching high altitudes, the billionaire philanthropist is sounding an alarm on cryptocurrency’s conspicuous high carbon footprint.
According to Gates’ point, Alex de Vries, a data scientist at Dutch Central Bank estimates that an average of 300 kg of carbon dioxide is needed for each Bitcoin transaction. This much requirement of CO2 is equivalent to the carbon footprint produced by approximately 750,000 Visa swipes.
According to Bill Gates, Cryptocurrency’s noticeable carbon footprints are bound to worsen mainstream adoption of the world’s largest cryptocurrency soars. Gates in a recent interview with the New York Times said.
“Bitcoin uses more electricity per transaction than any other method known to mankind,”. He called himself a “bitcoin skeptic,” and added that “ it’s not a great climate thing.”
According to the survey, a single bitcoin transaction uses approximately 707.6 kilowatt-hours of electrical energy. This is equivalent to the power consumed by the average U.S. household over 24 days. On a yearly basis, Bitcoin is using more energy than 38 countries.
Creator of Digiconomist, Alex De Vries says:
“Mining is a process that makes Bitcoin extremely energy-hungry by design, as the currency requires a huge amount of… calculations for its ultimate goal of processing financial transactions without intermediaries (peer to peer).”
All cryptocurrencies document every transaction on the public ledger. Documentation of transactions ensures transparency. But at the same time require more storage space or blocks. These blocks are ‘mined’ by miners by running a code on dedicated hardware. This process consumes energy equivalent to 78.5 terawatt-hours.
Nations like Chile, Austria, and Finland. Energy consumed by cryptocurrencies soared mainly after 2017. Gerald Moser, chief market strategist at Barclays Private Bank added:
“Adding cryptocurrencies to a portfolio will make it less green.”
Mining generates the same amount of electronic waste as Luxembourg. Twitter and Square CEO Jack Dorsey on the launch of its Bitcoin Clean Energy Investment said:
A $10 million fund is initiated for companies making bitcoin mining more energy efficient.