There is a long-lasting argument in the world of crypto that bitcoin is somehow negative for our environment. That it utilizes too much electricity, and as a result, our atmosphere is likely to take a real kick in the rear at some point in the future. Now, that argument is being pushed further, as data from Bank of America suggests the mining sector utilizes more energy than American Airlines, a company that flies more than 200 million people across the country each year.
Bank of America Is Really Hating On BTC
Bank of America was recently in the news for claiming that bitcoin served no purpose, and that the only real reason to purchase it was because of the ongoing price booms. However, the report issued by the bank made it clear that those involved in the institution didn’t care much for bitcoin, and likely didn’t appreciate the competition it presented.
At the end of the day, we all need to remember something big, and that is banks are somewhat scared of BTC. As a new asset class, the currency has the potential to put fiat out of commission and send many of the traditional financial methods we’ve all gotten so used to down the drain. Banks clearly want to stay in business and are worried that bitcoin could lead to a future where they don’t exist or where their services are no longer needed.
Thus, it makes sense for Bank of America to have some animosity towards the world’s number one digital currency by market cap. According to the latest report issued by the bank, every $1 billion placed into bitcoin requires the same amount of energy that’s utilized by roughly 1.2 million cars. The company also claims that the carbon footprint of the currency has a lot to do with its price, meaning the higher it goes, the more energy it will consume.
The report reads:
Looked at differently, a single bitcoin purchase at a price of ~$50,000 has a carbon footprint of 270 tons, the equivalent of 60 ICE cars… Given the relatively linear relationship between bitcoin prices and bitcoin energy use, it is perhaps no surprise that bitcoin’s estimated energy consumption has grown over 200 percent in the past two years.
A Lot of Activity Stems from China
In addition, the institution points out that a lot of bitcoin’s energy use stems from projects situated in China, and thus the country is contributing heavily to air pollution and the destruction of the natural environment. Bank of America writes:
Another key concern is that most hash power comes from China, where the government actively encourages bitcoin mining and where electricity costs are quite low. Nearly 60 percent of Chinese electrical generation is from coal-fired power plants, with less than 20 percent coming from natural gas or renewables. This means most bitcoin mining is fueled by unsustainable fossil fuels.