Already since long been discussions about the environmental impact and sustainability of the Bitcoin. A scientific article in the University of Qatar is now coming to the conclusion that due to the high energy consumption, state Intervention is necessary in the future. So could the tax and demand for it is lower. In addition, there is a need for incentives for alternative Blockchain technologies and new consensus-modes. While they find more and more application, highlights of the Association’s research center for energy Economics, the energy problem of the Blockchain to be “solvable”.
The growing energy in the crypto sector, the environment and the sustainable Survival of threatened needs on earth. This is the basis on which Jon Truby, a scientist of Qatar University, in his recent research argues. His Theory is that By the Bitcoin consumed annually huge amounts of energy, it undermines the global effort against climate change and the Paris Klimaabakommen. This over the chat, the advantages of the Blockchain.
“The huge confidence benefits for the security of transactions will be provided by your deliberate resource-intensive Design of the Bitcoin in the shadows. These verification processes now threatens the climate on which we depend for our Survival.“
State response: demand limit
So there is a need for government Intervention and tax offsets in order to promote Alternatives and reduce demand for Bitcoin.
“[…] The applications of the technology (such as digital currencies and Smart Contracts) can be specifically targeted to the demand of the development and use of particularly energy-limit-consuming technologies and to drive sustainable Alternatives”,
the legal scholar is certain.
A viable legislative options after Trubys, if possible, internationally coordinated taxes on mining processes, transactions or ownership of Bitcoin.
In March, the Ministers of the G20 had already decided to bring up appropriate common standards on the way. Her focus, however, is rather on the prevention of money laundering and criminal use of crypto – currencies-and-their ownership and use, per se.
Thus, the starting points of tax hand, there are have the Bitcoins already. If the appropriate environment is brought-centric advances as of Truby in the game, however, soon put in practice, especially in light of the faltering climate protection is questionable.
Mining: The controversial business with the performance of the computer
The root of the discussion and the reason for the high energy consumption, the cost of the so-called Mining. This refers to the Mining of new Bitcoins to the confirmation of Blockchain transactions. Here, for the solution of cryptographic Puzzles, the so-called Proof-of-Work mechanism, enormous computing power is needed. This, in turn, eats electricity.
Although such Concerns about the energy sustainability of the Leit-crypto currency are already old hat, that these are not so abate quickly, shows the view of the Bitcoin Energy Consumption Index. According to this, the crypto-Platzhirsch uses worldwide each year currently, so a lot of energy, such as Austria – and the trend is rising.
To mine alone, a single Bitcoin is currently being spent up to 1,500 euros in electricity. Thus, the production of a single Coins costs around a quarter of its current trade value, and as much as an average Four-person spending budget annually for electricity.
“If the Bitcoin energy consumption continues to rise so strongly, as he does today, he will not be fit for the future. In the long term, have to look Miner, therefore, for ways to reduce power consumption“,
Alex de Vries, Blockchain expert at the consulting firm PwC predicts.
Environmental impact in the crypto sector seems to be releasably
Such uses, as well as Trudy demanded a rethink already, reveals the views of the Mining industry. So it attracts more and more miners in the European North, where low electricity prices to lure low temperatures server cooling and low taxes. Often, it is argued, moreover, that the Bitcoin-consumption and inspire new innovations and spur the energy transition and the protection of the environment.
There’s a global mass application of Bitcoin is not only ecologically expensive, but with a view on the current consumption does not seem economically may not be feasible, currently, more and more Blockchain developers distance from the traditional Proof-of-Work mechanisms and rely on alternative confirmation modes and consensus systems that consume less power.
The research centre for energy economy in the conversation with BTC-ECHO this week to the conclusion:
“The Problem of high energy consumption [is], depending on the Blockchain-design and application […] is solvable.”
And also Jon Truby believes in the potential of the Blockchain for the future:
“The possibilities of the Blockchain are endless and their incentives can help to solve a variety of challenges of climate change. An example of this is the development of digital currencies for the financing of climate protection programs.“
While the consequences of climate change, these days seem more tangible than ever, don’t be lost in the battle of crypto-currencies in the protection of the environment. To win him, seems to be the Bitcoin, but the wrong candidate.