Environmental Impact of Bitcoin Mining: Air Quality Concerns and Regulation Needs

Bitcoin mining’s rapid growth raises serious environmental concerns, particularly its role in air pollution in the U.S. A study identifies significant electricity consumption tied to Bitcoin, mostly sourced from fossil fuels, leading to increased particulate matter exposure for millions. This poses public health risks, particularly for vulnerable populations. Regulatory measures may be necessary to address these environmental impacts, especially urging a shift to renewable energy sources in cryptocurrency mining.

Bitcoin has gained remarkable popularity, with its value fluctuating yet often increasing dramatically. However, the environmental consequences of Bitcoin mining may hinder the United States from achieving clean air standards. A recent study in Nature investigates how Bitcoin mining’s electricity consumption affects air quality in the U.S., particularly highlighting the role of fossil fuels in generating electricity for these operations.

The study identified 34 major Bitcoin mines and their associated electrical plants in 2022. It revealed that from mid-2022 to mid-2023, these mines consumed 32.3 terawatt-hours of electricity, equivalent to the annual needs of three to six million homes. Alarmingly, 85% of this electricity was sourced from fossil fuels, which significantly contributes to particulate matter (PM) pollution.

The research suggested that 1.9 million Americans experienced exposure to an increase of PM2.5 pollution from Bitcoin mines, even from significant distances away. Particulate matter of this size is linked to serious health risks, including cardiovascular and respiratory diseases, as reported by the U.S. Environmental Protection Agency. Vulnerable groups, such as pregnant people, children, and the elderly, face heightened risks from poor air quality.

Moreover, an increase as low as 0.1 μg/m3 of PM2.5 can yield substantial health concerns, with the Natural Resources Defense Council indicating that a 10 μg/m3 increase raises heart disease mortality risk by 10%. Besides human health, increasing air pollution could adversely affect plant and animal life, complicating efforts to meet air quality standards mandated by the National Ambient Air Quality Standard.

Countries worldwide are reacting by implementing regulations to limit or ban cryptocurrency mining to conserve energy. China’s landmark ban in 2021 aimed to reduce energy consumption, albeit at the cost of transferring mining operations to less renewable energy-rich nations. Researcher Alex de Vries remarked that despite the ban’s intentions, Bitcoin mining remained a damaging practice, potentially intensifying its environmental impact.

Public advocacy could play a role in incentivising policymakers to mandate that crypto mining primarily relies on renewable energy. However, it is crucial to implement safeguards to prevent crypto operations from diminishing the availability of clean energy resources necessary for residential needs.