IMF asks to increase electricity rates for Bitcoin mining by 85 %
The International Monetary Fund has proposed an 85 % increase in electricity rates for Bitcoin mining in view of the high energy consumption of the activity and the fact that, together with AI, it generates 1 % of carbon emissions into the environment.
Given the high energy consumption of Bitcoin mining, in addition to the generation of carbon emissions into the environment, the International Monetary Fund has proposed an increase in electricity rates by 85 %.
The organization, through a recent publication, indicates that both Bitcoin mining and the development of artificial intelligence “consumed 2 % of the world’s electricity in 2022, and it is estimated that this figure could reach 3.5 % in the next three years, according to projections from the International Energy Agency (IEA).”
Analyzing consumption and comparing it by country, it would correspond to that of Japan, the fifth country with the highest electricity demand globally.
Regarding electricity rates for mining bitcoin and other cryptocurrencies, which would be responsible for 0.7 % of global carbon emissions by 2027, the IMF has proposed an 85 % increase “to encourage miners to reduce their energy consumption and mitigate its environmental impact.”
At the same time, there are studies according to which the environmental impact of bitcoin mining would not be as harmful as is believed. Furthermore, it is argued that Bitcoin miners have been using renewable energy sources.
M.Pino
Source: iProup
(Reference image source: Fré Sonneveld in Unsplash)
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