Africa is quickly becoming the focal point of Bitcoin’s expansion, driven by tightened regulations in other regions and its flourishing adoption in nations like the Central African Republic, Nigeria, and Ghana. However, a recent report affiliated with the United Nations has highlighted significant environmental concerns related to this surge.

According to the study encompassing 76 countries, Bitcoin’s rapid growth is not without consequences. Dr. Kaveh Madani, director of the United Nations University Institute for Water, Environment, and Health (UNU-INWEH), emphasized, “Technological innovations are often associated with unintended consequences, and Bitcoin is no exception.”

During the study period from 2020 to 2021, the water usage attributed to global Bitcoin mining surpassed the total consumption of 300 million people in rural sub-Saharan Africa. Furthermore, if Bitcoin were considered a nation, its energy consumption would rank it 27th in the world, surpassing that of many African countries. The report revealed that the global Bitcoin mining network consumed a staggering 173.42 terawatt hours of electricity, resulting in a carbon footprint equivalent to burning 84 billion pounds of coal or operating 190 natural gas-fired power plants. To offset this, 7% of the Amazon rainforest would need to be replanted.

Coal constituted 45% of Bitcoin’s energy supply mix, while natural gas accounted for 21%. Hydropower, a renewable energy source with substantial environmental impacts, provided 16% of electricity demand.

While no African nation currently ranks in the top 10 for Bitcoin-related resources, countries such as Ethiopia, Egypt, and Angola have already experienced significant water impacts due to Bitcoin mining.

Dr. Sanaz Chamanara, the lead author of the study, pointed out, “Because countries use different sources of energy to generate electricity, their electricity production impacts on climate, water, and land are not the same.”

In light of these findings, the UN scientists advocate for investments in more environmentally friendly digital currencies. They also stress the importance of social justice in addressing the issue. Dr. Madani remarked, “When you consider which groups are currently benefiting from Bitcoin mining and which nations and generations will suffer the most from its environmental consequences, you can’t help but think about the inequity and injustice implications of the unregulated digital currency sector.”