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“Environmental catastrophe.”
“Insane amount of energy.”
“Enormous appetite.”
Read the headlines and stats about Bitcoin’s energy consumption, and like me, you might be considering the first flight to Mars.
The Bitcoin market is already comparable to the country of Iraq in terms of its electricity consumption, and it’s estimated that a single transaction could power more than 14 U.S. households for 1 day (209 kg of CO2).
So is it possible to be both an environmentalist, and pro-Bitcoin?
I started by measuring my carbon footprint with The Nature Conservancy calculator, and it estimated that I emit approximately 28 metric tons of CO2 per year. That’s higher than the U.S. average of roughly 17 metric tons per person, and influenced heavily by my plane travel.
Next I factored in my Bitcoin transactions. I’m trading Bitcoin at a rate of ~50x/year. That’s not insignificant given that the carbon footprint of each transaction is ~20% of a metric ton. In other words, Bitcoin is adding ~10mT and ~36% to my carbon footprint per year. My Bitcoin trading is contributing almost as much as my travel to my carbon footprint, and that is deeply disheartening.
Then I remembered Terrapass. Terrapass was started by my former professor, Dr. Karl Ulrich at the University of Pennsylvania, and his class of students. The company offers a way to offset your carbon emissions.
It’s simple. Individuals and businesses can purchase carbon offsets, renewable energy credits, and BEF water restoration certificates, to help reduce greenhouse gases, support clean energy, and help restore our freshwater ecosystems.
Though the company doesn’t accept Bitcoin today, I sent an email to Terrapass with this suggestion, and I’ll post any update here. In the meantime, you can purchase carbon offsets with credit cards and PayPal. Or, you can send a Bitcoin donation to an address I’ve setup at 1HXEyNrbtne5iSWv3X56yfUDNmismtAYS3, and I’ll purchase carbon offsets for you, minimizing the transactions. Today, 1 BTC would offset ~1,000 metric tons of CO2 through Terrapass.
Once you’ve offset your carbon footprint, don’t stop there:
- Advocate for proof-of-stake, a method that the Ethereum and other cryptocurrency communities are considering, partly to deal with the issue of energy consumption. We need more people writing, developing, and pushing for incorporation of this algorithm.
- Consider supporting cryptocurrencies that deal with the problem of climate change. Carboncoin and Climatecoin are two examples.
- Mine responsibly. Heat buildings with your ASICs, use green power, and divest from coal.
- Trade less frequently. Remember that high-speed, algorithmic trading in Bitcoin is adding exponentially to your personal carbon footprint.
- Give back after you create value. With a fat wallet, comes a metric ton of responsibility. Emulate the Pineapple Fund.
There are a number of myths about Bitcoin energy consumption as well, and it’s important to understand the facts.
That said, the Bitcoin and cryptocurrency community has real power to affect this problem. Now we need to energize.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.