Alex Hern UK technology editor
THE GUARDIAN
Fri, 17 September 2021,
A single bitcoin transaction generates the same amount of electronic waste as throwing two iPhones in the bin, according to a new analysis by economists from the Dutch central bank and MIT.
While the carbon footprint of bitcoin is well studied, less attention has been paid to the vast churn in computer hardware that the cryptocurrency incentivises. Specialised computer chips called ASICs are sold with no other purpose than to run the algorithms that secure the bitcoin network, a process called mining that rewards those who partake with bitcoin payouts. But because only the newest chips are power-efficient enough to mine profitably, effective miners need to constantly replace their ASICs with newer, more powerful ones.
“The lifespan of bitcoin mining devices remains limited to just 1.29 years,” write the researchers Alex de Vries and Christian Still in the paper, Bitcoin’s growing e-waste problem, published in the journal Resources, Conservation and Recycling.
“As a result, we estimate that the whole bitcoin network currently cycles through 30.7 metric kilotons of equipment per year. This number is comparable to the amount of small IT and telecommunication equipment waste produced by a country like the Netherlands.”
In 2020 the bitcoin network processed 112.5m transactions (compared with 539bn processed by traditional payment service providers in 2019), according to the economists, meaning that each individual transaction “equates to at least 272g of e-waste”. That’s the weight of two iPhone 12 minis.
The reason why e-waste is such a problem for the cryptocurrency is that, unlike most computing hardware, ASICs have no alternative use beyond bitcoin mining, and if they cannot be used to mine bitcoin profitably, they have no future purpose at all. It is theoretically possible for these devices to regain the ability to operate profitably at a later point in time should bitcoin prices suddenly increase and drive up mining income, the authors note.
“Nonetheless, there are several factors that generally prevent substantial extension of the lifetime of mining devices,” they add. Storing mining hardware costs money, and the longer it is stored for, the less likely it is that it will ever be profitable.
The authors also warn that the e-waste problem will probably grow further if the price of bitcoin continues to rise, since it will incentivise further investment in and replacement of ASIC hardware.
If the community were to try to reduce its e-waste problem, the paper concludes, it would need to replace the bitcoin mining process in “its entirety with a more sustainable alternative”, and the paper suggests “proof of stake”, an experimental replacement. Ethereum, a bitcoin successor, announced in May plans to move to proof of stake within months, although the switchover has yet to occur.
Other bitcoin alternatives have been less successful at limiting their environmental footprint. Chia, a cryptocurrency that is built on a “proof of time and space” algorithm, has been accused of leading to shortages in hard drives and SSDs, a type of storage medium popular in fast computers. “Instead of just wasting electricity, Chia chews through SSDs at a fantastic rate and also has thoroughly wrecked the market for big HDs,” said David Gerard, a cryptocurrency expert.
Fri, 17 September 2021,
A single bitcoin transaction generates the same amount of electronic waste as throwing two iPhones in the bin, according to a new analysis by economists from the Dutch central bank and MIT.
While the carbon footprint of bitcoin is well studied, less attention has been paid to the vast churn in computer hardware that the cryptocurrency incentivises. Specialised computer chips called ASICs are sold with no other purpose than to run the algorithms that secure the bitcoin network, a process called mining that rewards those who partake with bitcoin payouts. But because only the newest chips are power-efficient enough to mine profitably, effective miners need to constantly replace their ASICs with newer, more powerful ones.
“The lifespan of bitcoin mining devices remains limited to just 1.29 years,” write the researchers Alex de Vries and Christian Still in the paper, Bitcoin’s growing e-waste problem, published in the journal Resources, Conservation and Recycling.
“As a result, we estimate that the whole bitcoin network currently cycles through 30.7 metric kilotons of equipment per year. This number is comparable to the amount of small IT and telecommunication equipment waste produced by a country like the Netherlands.”
In 2020 the bitcoin network processed 112.5m transactions (compared with 539bn processed by traditional payment service providers in 2019), according to the economists, meaning that each individual transaction “equates to at least 272g of e-waste”. That’s the weight of two iPhone 12 minis.
The reason why e-waste is such a problem for the cryptocurrency is that, unlike most computing hardware, ASICs have no alternative use beyond bitcoin mining, and if they cannot be used to mine bitcoin profitably, they have no future purpose at all. It is theoretically possible for these devices to regain the ability to operate profitably at a later point in time should bitcoin prices suddenly increase and drive up mining income, the authors note.
“Nonetheless, there are several factors that generally prevent substantial extension of the lifetime of mining devices,” they add. Storing mining hardware costs money, and the longer it is stored for, the less likely it is that it will ever be profitable.
The authors also warn that the e-waste problem will probably grow further if the price of bitcoin continues to rise, since it will incentivise further investment in and replacement of ASIC hardware.
If the community were to try to reduce its e-waste problem, the paper concludes, it would need to replace the bitcoin mining process in “its entirety with a more sustainable alternative”, and the paper suggests “proof of stake”, an experimental replacement. Ethereum, a bitcoin successor, announced in May plans to move to proof of stake within months, although the switchover has yet to occur.
Other bitcoin alternatives have been less successful at limiting their environmental footprint. Chia, a cryptocurrency that is built on a “proof of time and space” algorithm, has been accused of leading to shortages in hard drives and SSDs, a type of storage medium popular in fast computers. “Instead of just wasting electricity, Chia chews through SSDs at a fantastic rate and also has thoroughly wrecked the market for big HDs,” said David Gerard, a cryptocurrency expert.
Statue to bitcoin inventor unveiled in Budapest
Thu, 16 September 2021,
Statue to bitcoin inventor unveiled in Budapest
Thu, 16 September 2021,
Statue to bitcoin inventor unveiled in Budapest
To reflect the mystery surrounding the true identity of bitcoin's founder, sculptors Tamas Gilly and Reka Gergely turned the face into a sort of mirror (AFP/ATTILA KISBENEDEK)More
Hungarian bitcoin enthusiasts unveiled a statue in Budapest on Thursday which they say is the first in the world to honour Satoshi Nakamoto, the enigmatic inventor of the virtual currency.
The bronze bust is of a hooded figure, in an allusion to the fact that the true identity of Nakamoto -- a pseudonym -- is unknown.
The sculpture, erected in a business park alongside a statue of Apple founder Steve Jobs and an installation by Hungarian inventor Erno Rubik, was the brainchild of entrepreneur and bitcoin journalist, Andras Gyorfi.
It was financed by four Hungarian cryptocurrency organisations.
"Back in March, I was researching the connection between digital art and blockchain," the technology behind bitcoin, Gyorfi told AFP before the unveiling.
"And I thought: 'why shouldn't Satoshi have a statue in Budapest?'", he said.
To reflect the mystery surrounding the true identity of bitcoin's founder, sculptors Tamas Gilly and Reka Gergely turned the face into a sort of mirror.
"The basic concept of bitcoin is that it belongs to everyone, the people of the internet, that we are all Satoshi," Gilly told AFP in his workshop just outside Budapest earlier this month.
"So anyone can recognise themselves when looking at the face," he said.
Created following the 2008 global financial crisis, bitcoin aspired to overthrow traditional monetary and financial institutions such as central banks.
The founding white paper, published on October 31, 2008, and penned by Nakamoto, included the key goal of processing online payments between two parties without passing via a financial institution.
Since a first block of 50 bitcoins was created in January 2009, around 18.8 million units are currently in circulation.
The cryptocurrency has been on a rollercoaster ride recently, witnessing wild swings in price.
But over the past year, bitcoin has increasingly won support from small and large investors alike, including on Wall Street and from Tesla boss Elon Musk.
It struck a world first this month by becoming legal tender in El Salvador.
pmu/spm
Hungarian bitcoin enthusiasts unveiled a statue in Budapest on Thursday which they say is the first in the world to honour Satoshi Nakamoto, the enigmatic inventor of the virtual currency.
The bronze bust is of a hooded figure, in an allusion to the fact that the true identity of Nakamoto -- a pseudonym -- is unknown.
The sculpture, erected in a business park alongside a statue of Apple founder Steve Jobs and an installation by Hungarian inventor Erno Rubik, was the brainchild of entrepreneur and bitcoin journalist, Andras Gyorfi.
It was financed by four Hungarian cryptocurrency organisations.
"Back in March, I was researching the connection between digital art and blockchain," the technology behind bitcoin, Gyorfi told AFP before the unveiling.
"And I thought: 'why shouldn't Satoshi have a statue in Budapest?'", he said.
To reflect the mystery surrounding the true identity of bitcoin's founder, sculptors Tamas Gilly and Reka Gergely turned the face into a sort of mirror.
"The basic concept of bitcoin is that it belongs to everyone, the people of the internet, that we are all Satoshi," Gilly told AFP in his workshop just outside Budapest earlier this month.
"So anyone can recognise themselves when looking at the face," he said.
Created following the 2008 global financial crisis, bitcoin aspired to overthrow traditional monetary and financial institutions such as central banks.
The founding white paper, published on October 31, 2008, and penned by Nakamoto, included the key goal of processing online payments between two parties without passing via a financial institution.
Since a first block of 50 bitcoins was created in January 2009, around 18.8 million units are currently in circulation.
The cryptocurrency has been on a rollercoaster ride recently, witnessing wild swings in price.
But over the past year, bitcoin has increasingly won support from small and large investors alike, including on Wall Street and from Tesla boss Elon Musk.
It struck a world first this month by becoming legal tender in El Salvador.
pmu/spm
No comments:
Post a Comment