Carbon Footprints

Colin L. Read ()
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Colin L. Read: SUNY Plattsburgh

Chapter Chapter 20 in The Bitcoin Dilemma, 2022, pp 213-218 from Springer

Abstract: Abstract The Bitcoin Dilemma is based on an economic model of the bitcoin mining sector that demonstrates the inexorable link between the price of bitcoin and the energy its mining consumes. I further demonstrated empirically in The Bitcoin Dilemma chapter that, on average, energy consumption has increased by 0.73% for every 1% price increase. This relationship proved to be both pronounced and statistically significant, even though bitcoin went through a halving event in 2020. Indeed, even with the halving in 2020, the bitcoin price actually rose at a quicker rate than the quantity of bitcoin rewarded declined in all but one year. The price of bitcoin is demand-driven and is completely disconnected from the reward offered to miners. This phenomenon is unique among commodities and has profound implications on bitcoin's carbon footprint.

Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-031-09138-4_20

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DOI: 10.1007/978-3-031-09138-4_20

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