In 2021, the COP26 at the Glasgow climate summit will be announcing all the final decisions, including a promise to limit carbon dioxide emissions, as well as a move towards more renewable and safer energy production. Although the summit is not legally binding, many of the weak promises remain unfulfilled by many countries. In addition, the summit overlooked the crucial impact cryptocurrency has on the environment and climate.
Energy consumption and greenhouse gas emissions
A University of Cambridge analysis estimated bitcoin consumes around 707 kWh per transaction, as computers churn and try different ways to come up with the correct number sequences. Computers generate energy and heat up, so they need to be cooled.
The numbers keep worsening as bitcoin miners increase their computing power to compete with each other. These people have to process more transactions or reduce the amount of electricity they consume since rewards are cut in half. Thus, miners are always looking for ways to reduce the electricity they consume.