This paper looks at the energy consumption of seven proof-of-work-based anarchic (public) blockchains such as Bitcoin and Ethereum. By using a hashrate division method – similar to the Cambridge Bitcoin Electricity Consumption Index – a lower bound and upper bound of mining hardware are provided. Based on this method we are able to show that proof-of-work chains continue to consume resources in direct proportion to the underlying coin value. Due to the rapid increase in coin value, proof-of-work-related activities – such as semiconductor manufacturing – are once again squeezing supply chains and retail channels, crowding out socially productive goods and services from entering the marketplace.
%0 Generic
%1 swanson2021bitcoin
%A Swanson, Tim
%D 2021
%J Great Wall of Numbers
%K Bitcoin Ethereum blockchain climate_change energy_consumption energy_efficiency
%T Bitcoin and other PoW coins are an ESG nightmare
%U https://www.ofnumbers.com/2021/02/14/bitcoin-and-other-pow-coins-are-an-esg-nightmare/
%X This paper looks at the energy consumption of seven proof-of-work-based anarchic (public) blockchains such as Bitcoin and Ethereum. By using a hashrate division method – similar to the Cambridge Bitcoin Electricity Consumption Index – a lower bound and upper bound of mining hardware are provided. Based on this method we are able to show that proof-of-work chains continue to consume resources in direct proportion to the underlying coin value. Due to the rapid increase in coin value, proof-of-work-related activities – such as semiconductor manufacturing – are once again squeezing supply chains and retail channels, crowding out socially productive goods and services from entering the marketplace.
@electronic{swanson2021bitcoin,
abstract = {This paper looks at the energy consumption of seven proof-of-work-based anarchic (public) blockchains such as Bitcoin and Ethereum. By using a hashrate division method – similar to the Cambridge Bitcoin Electricity Consumption Index – a lower bound and upper bound of mining hardware are provided. Based on this method we are able to show that proof-of-work chains continue to consume resources in direct proportion to the underlying coin value. Due to the rapid increase in coin value, proof-of-work-related activities – such as semiconductor manufacturing – are once again squeezing supply chains and retail channels, crowding out socially productive goods and services from entering the marketplace.},
added-at = {2021-02-16T18:13:45.000+0100},
author = {Swanson, Tim},
biburl = {https://www.bibsonomy.org/bibtex/298aa712fe92248007c5324ab30d789b5/meneteqel},
day = 14,
interhash = {6ed0aab104d13fada9b69ecd1609d800},
intrahash = {98aa712fe92248007c5324ab30d789b5},
journal = {Great Wall of Numbers},
keywords = {Bitcoin Ethereum blockchain climate_change energy_consumption energy_efficiency},
language = {en-US},
month = feb,
timestamp = {2021-02-19T14:42:04.000+0100},
title = {Bitcoin and other PoW coins are an ESG nightmare},
url = {https://www.ofnumbers.com/2021/02/14/bitcoin-and-other-pow-coins-are-an-esg-nightmare/},
year = 2021
}