Bitcoin miners routinely greenwash their industry even though mining operations have become so big and electricity intensive that a single facility can consume 1GW of electricity when the world’s largest wind farm only produces 1/50th of that amount at 20MW.

With regards to where this electricity is coming from, bitcoin miners are motivated by profit margins to seek out the cheapest electricity they can find.  In the past, this has meant seeking out hydroelectric power plants that produced more electricity than the local grids could use where electricity rates were remarkably low; however, bitcoin mining has outgrown the available hydroelectric capacity and have sought out cheap sources regardless of their source. In the worst case, miners have resurrected formerly retired fossil fuel plants.  Put simply, there is no denying that for each $1 in bitcoin market value created was responsible for $0.35 in climate damages.

As an example, Greenidge Generation converted a former coal plant to natural gas for behind the meter bitcoin mining in the picturesque Finger Lakes region of upstate New York.  This facility not only pollutes the air, but also harms the Seneca Lake ecosystem by discharging up to 134 million gallons of hot water a day into New York’s deepest glacial lake.  Adding insult to injury, Greenidge Generation advertises themselves as a 100% green crypto facility. And today, there are more than 50 similar retired plants, in New York state, being considered for new bitcoin mining facilities following along the lines of Greenidge.

Even worse examples of bitcoin miner’s total disregard for environmental protection can be found in Stronghold Digital Mining who re-opened Scrubgrass Power Plant in Kennerdell, PA.  This facility is burning the dirtiest source of energy in the form of coal waste — a combination of rock, coal, and other materials that were deemed unsuitable for burning and left abandoned since the 1970s when coal mines in the area were closed.  While allowing coal waste to sit causes environmental problems on its own, the damage caused by burning it is even worse as the Scrubgrass Power Plant simply moves the pollution from the ground to the air, releasing 365,000 metric tons of CO2 as well as 1,000 metric tons of methane in 2019 alone.

Another example of bitcoin mining claimed to be socially conscience is their claims to be reducing electricity consumption during periods of peak load on the grid.  Specifically in Texas, bitcoin miners have allowed people to think that the voluntarily reduced their loads to prevent the grid from failing during this past summer’s heat waves.  However, the truth is far different as miners were paid $1.122 per kilowatt hour of electricity that they pay as little as $0.02 per kilowatt, a 5,560% markup.  Even with this sale, bitcoin miners still produced 80% of the coins they otherwise would have produced.