1) Ok, so how much CO2 does BTC actually create? How much of a worry is it?
https://twitter.com/SBF_Alameda/status/1392724490933575683
2) NOT... advice, really. Just math.
3) Ok, so. Let's say you spend $X on BTC/ETH blockchain fees (or any PoW currency).
Those $X are going to miners in a bidding war for block slots.
In an efficient market, as long as it's profitable to run a BTC/ETH mining rig, more people will open them up.
Those $X are going to miners in a bidding war for block slots.
In an efficient market, as long as it's profitable to run a BTC/ETH mining rig, more people will open them up.
4) So in equilibrium, it should be a bit above breakeven: if they're paid $X, they must have < $X of total expenses.
So gas fees ~ 1.5 * mining costs.
mining costs are 1/2 electricity 1/2 machines, which take electricity.
So 3/4 * mining costs ~ $ spent on electricity.
So gas fees ~ 1.5 * mining costs.
mining costs are 1/2 electricity 1/2 machines, which take electricity.
So 3/4 * mining costs ~ $ spent on electricity.
5) Something like 1/3 of mining rigs run on renewable electricity, so dirty electricity ~ 2/3 * $ spent on electricity.
Electricity that miners use costs ~$0.05 / kWh.
Each kWh of dirty electricity produces about 0.0004 tons of CO2.
Electricity that miners use costs ~$0.05 / kWh.
Each kWh of dirty electricity produces about 0.0004 tons of CO2.
6) Finally, how bad is one ton of CO2?
Well, givingwhatwecan.org/report/cool-ea… estimates about $1 to reduce CO2 emissions by 1 ton.
Well, givingwhatwecan.org/report/cool-ea… estimates about $1 to reduce CO2 emissions by 1 ton.
7) Ok, so putting it all together....
a) $x in gas
b) * 2/3 --> in mining cost
c) * 3/4 --> electricity
d) * 2/3--> dirty electricity
e) / $0.05 --> kWh
f) * 0.0004 --> tons of CO2
g) * $1 --> cost to offset
2/3 * 3/4 * 2/3 / 0.05 * 0.0004 * 1 = 0.0026
a) $x in gas
b) * 2/3 --> in mining cost
c) * 3/4 --> electricity
d) * 2/3--> dirty electricity
e) / $0.05 --> kWh
f) * 0.0004 --> tons of CO2
g) * $1 --> cost to offset
2/3 * 3/4 * 2/3 / 0.05 * 0.0004 * 1 = 0.0026
8) So this implies, with large error bars:
If, for every $1 you spend on gas/blockchain fees, you donate $0.0026 to Cool Earth, you'll be roughly carbon neutral.
@elonmusk -- does this seem right? If so, I think the environmental worries about BTC are pretty easily offset!
If, for every $1 you spend on gas/blockchain fees, you donate $0.0026 to Cool Earth, you'll be roughly carbon neutral.
@elonmusk -- does this seem right? If so, I think the environmental worries about BTC are pretty easily offset!
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