Bitcoin and Its Energy, Environmental, and Social Impacts: An Assessment of Key Research Needs in the Mining Sector

Murray A. Rudd (), Lee Bratcher, Simon Collins, David Branscum, Matthew Carson, Shaun Connell, Elliot David, Magdalena Gronowska, Sebastien Hess, Austin Mitchell, Matt Prusak, Kyle Schneps, Maxim Serezhin, Scott A. Wolfe and Dennis Porter
Additional contact information
Murray A. Rudd: Satoshi Action Education, Portland, OR 97214, USA
Lee Bratcher: Texas Blockchain Council, Richardson, TX 75081, USA
Simon Collins: Stackr Limited, Otautahi 9610, New Zealand
David Branscum: Rebel Mining Company, Jackson, WY 83001, USA
Matthew Carson: Hash House Tech, Wilmington, DE 19808, USA
Shaun Connell: Lancium Technologies Corp, The Woodlands, TX 77380, USA
Elliot David: Sustainable Bitcoin Protocol, Rehoboth Beach, DE 19971, USA
Magdalena Gronowska: PRTI Inc., Franklinton, NC 27525, USA
Sebastien Hess: Block Green AG, 6343 Rotkreuz, Switzerland
Austin Mitchell: Synota Inc., Columbus, OH 43219, USA
Matt Prusak: US Bitcoin Corp, Austin, TX 78741, USA
Kyle Schneps: Foundry Digital LLC., Pittsford, NY 14534, USA
Maxim Serezhin: Standard Power, Coshocton, OH 43812, USA
Scott A. Wolfe: Bitcoin Coalition of Canada, Toronto, ON M6H 3P2, Canada
Dennis Porter: Satoshi Action Education, Portland, OR 97214, USA

Challenges, 2023, vol. 14, issue 4, 1-29

Abstract: In this study, we used a combination of AI-assisted analysis of social media discourse and collaboration with industry experts to delve into the key research needs associated with the Bitcoin mining industry. We identified primary threats, opportunities, and research questions related to the Bitcoin mining industry and its wider impacts, focusing on its energy use and environmental footprint. Our findings spotlight the industry’s move towards increasingly greater energy efficiency and an emerging commitment to renewable energy, highlighting its potential to contribute to the coming energy transition. We underscore the transformative potential of emerging applications in the Bitcoin mining sector, especially regarding demand response, grid flexibility, and methane mitigation. We suggest that targeted research on Bitcoin can serve policymakers, private sector decision-makers, research funding agencies, environmental scientists, and the Bitcoin industry itself. We propose that filling key information gaps could help clarify the risks and benefits of Bitcoin mining by encouraging collaboration among researchers, policymakers, and industry stakeholders and conducting research that provides baseline peer-reviewed evidence surrounding Bitcoin’s production and impacts. A collaborative approach could help mitigate the risks and realize the benefits of Bitcoin mining, including potentially positive and substantive contributions in alignment with the Sustainable Development Goals.

Keywords: bitcoin; bitcoin mining; energy transition; grid flexibility; key questions; research agenda; renewable energy (search for similar items in EconPapers)
JEL-codes: A00 C00 Z00 (search for similar items in EconPapers)
Date: 2023
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