30s Summary
Researchers from Exponential Science warn that banning Bitcoin mining in eco-friendly countries could increase global carbon emissions, as mining activities may simply shift to less green countries with more carbon-intensive methods. For instance, a ban in Canada, which relies on nuclear and hydro-electric energy, could cause a 5.6% increase in network emissions. This issue comes to light as the Canadian province of Manitoba extends a temporary stop on electrical service for cryptocurrency operations and Russia attempts to regulate its own crypto mining industry.
Full Article
Research indicates that banning Bitcoin mining in eco-friendly countries may lead to more harm than good for the global economy. It seems that well-planned strategies might actually generate unexpected side-effects, like moving mining activities to areas with more carbon intense methods, according to Exponential Science.
The researchers pointed out that a ban on Bitcoin mining in lower emission countries could cause a domino effect on global carbon emissions. In other words, if countries known for sustainable practices stop Bitcoin mining, this could just push the activity to less green countries and increase global carbon emissions.
The team emphasized that the effects of Bitcoin mining can vary depending on the environmental impact of the energy sources used in different countries. To illustrate, if a country like Canada – which mainly uses nuclear and hydro-electric energy – bans Bitcoin mining, it could significantly increase the emission levels globally.
They estimate if Canada was to put a stop to mining, it would result in a shocking 5.6% increase in network emissions. This equals around an extra 2.5 million tonnes of CO2 being released into the atmosphere each year.
In a related story, the Canadian province of Manitoba has decided to extend a temporary stop on new applications for electrical service for cryptocurrency operations by the government-owned Manitoba Hydro group. This pause applies to new and old requests without a formal infrastructure agreement.
Meanwhile, last year saw Russian President Vladimir Putin sign a series of laws to create a clear framework for crypto mining in Russia. However, while it’s a step in the right direction, experts warn that it’s not a full ‘green light’ for crypto mining in the country, but rather a way to establish controls and benchmarks for the industry.