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Bitcoin Can Push Global Warming up to 2 Degrees C

Bitcoin Can Push Global Warming up to 2 Degrees C

Tuesday, 13 November, 2018 - 06:15
A Bitcoin (virtual currency) coin is seen in an illustration picture taken at La Maison du Bitcoin in Paris. Photo: Reuters
London - Asharq Al-Awsat
Mining and trading cryptocurrencies like Bitcoin may lead to an increase in carbon emissions driving the earth to warm by two degrees Celsius by 2033.

A new study published in the Nature Climate Change journal showed that the equipment and the electricity amount required to mine a cryptocurrency could exacerbate climate change.

Katie Taladay, coauthor of the study conducted by the University of Hawaii, said: "Currently, the emissions from transportation, housing and food are considered the main contributors to ongoing climate change. This research illustrates that Bitcoin should be added to this list."

Bitcoin is among the most important financial phenomena in our era. This currency emerged 10 years ago by the programmer Satoshi Nakamoto who published a paper defining the principles and basics of the cryptocurrency independent from any official institute, the German News Agency reported.

The paper's ideas were revolutionary, as the currency would not be subject to the rules of central banks or national borders. Instead of the protection offered by central banks and national institutions for the traditional currency, the serial data technology used to issue digital currencies guarantees the credibility and security of these currencies.

Serial data technology is a public visual transaction book where transactions are recorded successfully. If anyone tries to tamper with this series, he will be immediately detected because there are too many copies of this book or record available for the public.

This technique prevents the use of one currency per person more than once, as once used by this person in purchase or sale immediately moves to the other party's wallet that will become the only one able to reuse it.

According to a study published by financial analyst and specialist in serial data technology Alex de Fries, the amount of electricity consumed in Bitcoin minting is equivalent to the amount of electricity used in Ireland.

De Fries says the minting process can use about half of the world's total electricity consumption by the end of this year.

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