Source: DNB, IEA, Cambridge Bitcoin Electricity Consumption Index
More sustainable alternatives to the algorithm used are available
Not all cryptos are based on an energy-intensive algorithm. The algorithm of bitcoin and ethereum, among others, has the highest energy consumption per transaction compared to other technologies with similar functionality that are currently available. This is one of the reasons why, for example, the Swedish financial supervisory authority has recently called for an EU-wide ban on cryptos that use this energy-intensive mining method.
It is as yet difficult to compare the total climate impact of cryptos with conventional means of payment
The new method for calculating the climate impact of the bitcoin network comprises five building blocks, each based on open data sources. Interested parties are free to adopt the new method, and to improve or update it as new data becomes available. For further details, please refer to the DNB Analysis below. It is not yet possible to draw an accurate comparison with the energy consumption of conventional means of payment. Previous DNB analyses offered insight into the climate impact of individual cash and card transactions. However, it is difficult to make comparisons with cryptos due to a mismatch in the methods for calculating the carbon footprint. Nonetheless, for cryptos as well as for conventional means of payment, it is clear that the large variety of possible design choices can result in large differences in the ultimate carbon footprint per transaction.
More information on cryptos. If you have any questions please email: stat-info@dnb.nl