Jacopo Graziuso’s econometric study explains how the presence of Bitcoin is connected to the reduction of emissions and consumption in countries where it is mined.
The debate on Bitcoin’s environmental impact has been at the center of media attention for years, often characterized by approximate information and common misconceptions. But what emerges when data is analyzed? An answer comes from the study by Jacopo Graziuso, a recent graduate in Economics and Finance at the University of Salento, who dedicated his thesis to the topic, titled: “Bitcoin and energy: towards efficiency and environmental sustainability”.
“It bothers me when they tell me ‘Bitcoin pollutes, Bitcoin consumes’. This prompted me to write the thesis,” Graziuso tells Atlas21 microphones. “We live in an era of free and accessible information, yet disinformation reigns supreme, leading to beliefs without scientific foundation.”
Regarding his research work, Graziuso emphasizes: “I thank professor of econometrics Pierluigi Toma who knew what Bitcoin is and what mining is and gave me carte blanche for writing the thesis.”
The methodology used for the study is an econometric analysis based on data from 171 states from 2009 to 2024, with particular attention to the relationship between Bitcoin presence, greenhouse gas emissions (climate-altering gases) and energy consumption. To define Bitcoin’s “presence”, Graziuso created a variable that takes value 1 if at least 1% of the population uses (knows or has a wallet) the cryptocurrency or if it is present in state reserves.
The results of the research, conducted only with open source software, contradict the dominant narrative, Graziuso explains: “The analysis shows that Bitcoin’s presence in a state is associated with a decrease in greenhouse gas emissions. The study reveals that Bitcoin’s presence in a state reduces emissions by 39 megatons of CO2 equivalent. Essentially, where there is Bitcoin, climate-altering gas emissions decrease.”
Graziuso wants to emphasize the difference between consumption and pollution: “The problem is not consumption, it’s pollution. The distinction is fundamental: energy consumption is necessary for human development, while pollution derives from the use of inefficient energy sources. Currently China consumes over 4500% more than the entire Bitcoin network. Furthermore, thanks to mining flexibility, Bitcoin can help a state reduce general consumption.”
The research highlights how mining is acting as a catalyst for the adoption of renewable and nuclear energy. Mining naturally seeks the cheapest sources which increasingly coincide with the cleanest ones, the interviewee states.
One analyzed aspect is Bitcoin’s role as “buyer of last resort” for otherwise wasted energy. Graziuso cites several examples:
- Alps Blockchain, which has reactivated 32 disused hydroelectric plants in northern Italy and is working on building facilities in Paraguay and Ecuador exploiting hydroelectric energy;
- projects like Gridless that exploit excess energy from renewable sources in remote areas: “Not only does [Gridless] optimize the use of local energy resources, but it reinvests mining profits in communities, improving access to electricity and supporting the local economy,” writes Graziuso;
- in Texas, thanks to agreements with electricity grid operator ERCOT, miners exploit the operational flexibility of their machines to adapt consumption to grid needs, turning them off during peak moments and turning them back on when there is surplus energy, thus acting as buyers of last resort and contributing to stabilizing the electrical grid.
Another interesting aspect concerns the recovery of heat generated by machines: “Marathon Digital Holdings in Finland uses heat from its ASICs to heat 80,000 homes,” explains Graziuso. “Domestic applications are also being developed where ASIC heat is used for heating, further mitigating pollution.”
Immersion cooling, a technique that involves immersing mining machines in a dielectric fluid made in the laboratory, is cited as a promising solution to improve efficiency and reduce environmental impact. This way it is also possible to reduce machine noise, while the heat produced is dissipated by the dielectric material. Graziuso cites CleanSpark as an example of a completely carbon neutral mining farm that uses this technology: “This cooling technique allows us to safely overclock hardware, increasing performance by increasing operating frequency beyond factory settings,” states CleanSpark.
The thesis includes a section dedicated to zones that are emerging as sustainable mining hubs in different parts of the world:
- in Kenya and Ethiopia, “mining powered by hydroelectric energy is bringing drinking water and electricity to previously unserved communities,” declares Graziuso;
- in Georgia and Texas, Bitcoin mining is contributing to making the electrical grid more stable, intervening during peak demand moments and absorbing excess energy during overproduction periods;
- in Canada, companies like Upstream Data and Hut 8 Mining use mining to valorize excess or dispersed energy, including gas flaring in oil fields, thus reducing energy waste and emissions;
- the Makai project in Hawaii exploits OTEC (Ocean Thermal Energy Conversion) technology to convert ocean thermal energy into clean and renewable electricity.
Despite mining’s potential, obstacles to complete decarbonization still exist: “Decarbonization is still far away. Currently in many countries there are still state incentives from 40 years ago that favor fossil sources. Due to these incentives, today entrepreneurs’ costs are lower when fossil fuels are used. Once these state incentives end, perhaps the situation will improve. At the moment it is the miners who must voluntarily use renewable sources,” observes Graziuso. Italy, for example, continues to depend about 60% on fossil sources.
Another piece of data analyzed in the thesis is the improvement in energy efficiency of specialized mining machines: “In about 15 years, efficiency has improved by over 95%: this means decreased consumption and pollution,” emphasizes Graziuso.
“I hope this research contributes to spreading a more accurate and data-based narrative,” concludes Graziuso. “Bitcoin is not the problem, but could be part of the solution to the global energy challenge.”
The thesis will soon be published in its entirety online as a scientific paper.
