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Environmental impact of bitcoin
The environmental impact of bitcoin is significant. Bitcoin mining, the process by which bitcoins are created and transactions are finalized, is energy-consuming and results in carbon emissions, as 48% of the electricity used in 2025 was generated through fossil fuels while 52% was generated through sustainable energy sources. Moreover, bitcoins are mined on specialized computer hardware resulting in electronic waste. Scholars argue that bitcoin mining could support renewable energy development by utilizing surplus electricity from wind and solar. Bitcoin's environmental impact has attracted the attention of regulators, leading to incentives or restrictions in various jurisdictions.
Bitcoin mining is a highly electricity-intensive proof-of-work process. Miners run dedicated software to compete against each other and be the first to solve the current 10 minute block, yielding them a reward in bitcoins. A transition to the proof-of-stake protocol, which has better energy efficiency, has been described as a sustainable alternative to bitcoin's scheme and as a potential solution to its environmental issues. Bitcoin advocates oppose such a change, arguing that proof of work is needed to secure the network.
Bitcoin mining's distribution makes it difficult for researchers to identify the location of miners and electricity use. It is therefore difficult to translate energy consumption into carbon emissions. As of 2025[update], a non-peer-reviewed study by the Cambridge Centre for Alternative Finance (CCAF) estimated that bitcoin consumed 138 TWh (500 PJ) annually, representing 0.5% of the world's electricity consumption and resulting in annual greenhouse gas emissions of 39.8 Mt CO2, representing 0.08% of global emissions and comparable to Slovakia's emissions.
Until 2021, most bitcoin mining was done in China. Chinese miners relied on cheap coal power in Xinjiang and Inner Mongolia during late autumn, winter and spring, migrating to regions with overcapacities in low-cost hydropower (like Sichuan and Yunnan) between May and October. After China banned bitcoin mining in June 2021, its mining operations moved to other countries. By August 2021, mining was concentrated in the U.S. (35%), Kazakhstan (18%), and Russia (11%) instead. A study in Scientific Reports found that from 2016 to 2021, each US dollar worth of mined bitcoin caused 35 cents worth of climate damage, compared to 95 for coal, 41 for gasoline, 33 for beef, and 4 for gold mining. The shift from coal resources in China to coal resources in Kazakhstan increased bitcoin's carbon footprint, as Kazakhstani coal plants use hard coal, which has the highest carbon content of all coal types. Despite the ban, covert mining operations gradually came back to China, reaching 21% of global hashrate as of 2022[update].
Reducing the environmental impact of bitcoin is possible by mining only using clean electricity sources. In 2023, Jamie Coutts, a crypto analyst writing for Bloomberg Terminal said that renewables represented about half of global bitcoin mining sources, while research by the nonprofit tech company WattTime estimated that US miners consumed 54% fossil fuel-generated power. A 2025 paper published in Nature Communications found that the 34 largest U.S. bitcoin mines consumed 32.3 TWh of electricity from Aug 2022 to July 2023, 33% more than Los Angeles. Fossil fuel power plants generated 85% of the increased electricity demand from these mines. The European Securities and Markets Authority and the European Central Bank suggested that using renewable energy for mining may limit the availability of clean energy for the general population. A 2025 study in Scientific Reports of ten major cryptocurrency-producing countries (2019–2022) found that Bitcoin mining's electricity use was linked to worse environmental sustainability. A larger share of renewables softened but did not eliminate these effects during the study period, and the impact on water use was limited. As of 2025[update], a CCAF report based on a survey of 49 bitcoin-mining firms (about 48% of network hashrate at the time of data collection) reported their electricity mix as renewables (43%), natural gas (38%), nuclear (10%), and coal (9%).
Bitcoin mining representatives argue that their industry creates opportunities for wind and solar companies, leading to a debate on whether bitcoin could be an ESG investment. According to a 2023 ACS Sustainable Chemistry & Engineering paper, directing the surplus electricity from intermittent renewable energy sources such as wind and solar, to bitcoin mining could reduce electricity curtailment, balance the electrical grid, and increase the profitability of renewable energy plants—therefore accelerating the transition to sustainable energy and decreasing bitcoin's carbon footprint. A 2023 review published in Resource and Energy Economics also concluded that bitcoin mining could increase renewable capacity but that it might increase carbon emissions and that mining bitcoin to provide demand response largely mitigated its environmental impact. Two studies from 2023 and 2024 led by Fengqi You concluded that mining bitcoin off-grid during the precommercial phase (when a wind or solar farm is generating electricity but not yet integrated into the grid) could bring additional profits and therefore support renewable energy development and mitigate climate change. Another 2024 study by Fengqi You published in the Proceedings of the National Academy of Sciences of the United States of America showed that pairing green hydrogen infrastructure with bitcoin mining can accelerate the deployment of solar and wind power capacities. A 2024 study published in Heliyon simulated that a solar-powered bitcoin mining system could achieve a return on investment in 3.5 years compared to 8.1 years for selling electricity to the grid, while preventing 50,000 tons of CO2 emissions annually. The authors note that proof-of-stake cryptocurrencies cannot provide these incentives.
Bitcoin has been mined at oilfields using electricity generated from the combustion of associated petroleum gas (APG), a methane-rich byproduct of crude oil drilling that is often flared or vented. Methane is a greenhouse gas with a global warming potential 28–36 times greater than CO2.
In the United States, regulators have moved to phase out routine flaring: in December 2023 the EPA finalized standards that, after a two-year phase-in, prohibit routine flaring of associated gas from new oil wells (with limited emergency/maintenance exceptions), requiring routing to sales, on-site beneficial use, or reinjection. In April 2024, the Bureau of Land Management adopted a separate Waste Prevention Rule to curb venting, flaring, and leaks on federal and Tribal lands and to limit avoidable losses.
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Environmental impact of bitcoin
The environmental impact of bitcoin is significant. Bitcoin mining, the process by which bitcoins are created and transactions are finalized, is energy-consuming and results in carbon emissions, as 48% of the electricity used in 2025 was generated through fossil fuels while 52% was generated through sustainable energy sources. Moreover, bitcoins are mined on specialized computer hardware resulting in electronic waste. Scholars argue that bitcoin mining could support renewable energy development by utilizing surplus electricity from wind and solar. Bitcoin's environmental impact has attracted the attention of regulators, leading to incentives or restrictions in various jurisdictions.
Bitcoin mining is a highly electricity-intensive proof-of-work process. Miners run dedicated software to compete against each other and be the first to solve the current 10 minute block, yielding them a reward in bitcoins. A transition to the proof-of-stake protocol, which has better energy efficiency, has been described as a sustainable alternative to bitcoin's scheme and as a potential solution to its environmental issues. Bitcoin advocates oppose such a change, arguing that proof of work is needed to secure the network.
Bitcoin mining's distribution makes it difficult for researchers to identify the location of miners and electricity use. It is therefore difficult to translate energy consumption into carbon emissions. As of 2025[update], a non-peer-reviewed study by the Cambridge Centre for Alternative Finance (CCAF) estimated that bitcoin consumed 138 TWh (500 PJ) annually, representing 0.5% of the world's electricity consumption and resulting in annual greenhouse gas emissions of 39.8 Mt CO2, representing 0.08% of global emissions and comparable to Slovakia's emissions.
Until 2021, most bitcoin mining was done in China. Chinese miners relied on cheap coal power in Xinjiang and Inner Mongolia during late autumn, winter and spring, migrating to regions with overcapacities in low-cost hydropower (like Sichuan and Yunnan) between May and October. After China banned bitcoin mining in June 2021, its mining operations moved to other countries. By August 2021, mining was concentrated in the U.S. (35%), Kazakhstan (18%), and Russia (11%) instead. A study in Scientific Reports found that from 2016 to 2021, each US dollar worth of mined bitcoin caused 35 cents worth of climate damage, compared to 95 for coal, 41 for gasoline, 33 for beef, and 4 for gold mining. The shift from coal resources in China to coal resources in Kazakhstan increased bitcoin's carbon footprint, as Kazakhstani coal plants use hard coal, which has the highest carbon content of all coal types. Despite the ban, covert mining operations gradually came back to China, reaching 21% of global hashrate as of 2022[update].
Reducing the environmental impact of bitcoin is possible by mining only using clean electricity sources. In 2023, Jamie Coutts, a crypto analyst writing for Bloomberg Terminal said that renewables represented about half of global bitcoin mining sources, while research by the nonprofit tech company WattTime estimated that US miners consumed 54% fossil fuel-generated power. A 2025 paper published in Nature Communications found that the 34 largest U.S. bitcoin mines consumed 32.3 TWh of electricity from Aug 2022 to July 2023, 33% more than Los Angeles. Fossil fuel power plants generated 85% of the increased electricity demand from these mines. The European Securities and Markets Authority and the European Central Bank suggested that using renewable energy for mining may limit the availability of clean energy for the general population. A 2025 study in Scientific Reports of ten major cryptocurrency-producing countries (2019–2022) found that Bitcoin mining's electricity use was linked to worse environmental sustainability. A larger share of renewables softened but did not eliminate these effects during the study period, and the impact on water use was limited. As of 2025[update], a CCAF report based on a survey of 49 bitcoin-mining firms (about 48% of network hashrate at the time of data collection) reported their electricity mix as renewables (43%), natural gas (38%), nuclear (10%), and coal (9%).
Bitcoin mining representatives argue that their industry creates opportunities for wind and solar companies, leading to a debate on whether bitcoin could be an ESG investment. According to a 2023 ACS Sustainable Chemistry & Engineering paper, directing the surplus electricity from intermittent renewable energy sources such as wind and solar, to bitcoin mining could reduce electricity curtailment, balance the electrical grid, and increase the profitability of renewable energy plants—therefore accelerating the transition to sustainable energy and decreasing bitcoin's carbon footprint. A 2023 review published in Resource and Energy Economics also concluded that bitcoin mining could increase renewable capacity but that it might increase carbon emissions and that mining bitcoin to provide demand response largely mitigated its environmental impact. Two studies from 2023 and 2024 led by Fengqi You concluded that mining bitcoin off-grid during the precommercial phase (when a wind or solar farm is generating electricity but not yet integrated into the grid) could bring additional profits and therefore support renewable energy development and mitigate climate change. Another 2024 study by Fengqi You published in the Proceedings of the National Academy of Sciences of the United States of America showed that pairing green hydrogen infrastructure with bitcoin mining can accelerate the deployment of solar and wind power capacities. A 2024 study published in Heliyon simulated that a solar-powered bitcoin mining system could achieve a return on investment in 3.5 years compared to 8.1 years for selling electricity to the grid, while preventing 50,000 tons of CO2 emissions annually. The authors note that proof-of-stake cryptocurrencies cannot provide these incentives.
Bitcoin has been mined at oilfields using electricity generated from the combustion of associated petroleum gas (APG), a methane-rich byproduct of crude oil drilling that is often flared or vented. Methane is a greenhouse gas with a global warming potential 28–36 times greater than CO2.
In the United States, regulators have moved to phase out routine flaring: in December 2023 the EPA finalized standards that, after a two-year phase-in, prohibit routine flaring of associated gas from new oil wells (with limited emergency/maintenance exceptions), requiring routing to sales, on-site beneficial use, or reinjection. In April 2024, the Bureau of Land Management adopted a separate Waste Prevention Rule to curb venting, flaring, and leaks on federal and Tribal lands and to limit avoidable losses.