Does Crypto Kill? Relationship between Electricity Consumption Carbon Footprints and Bitcoin Transactions

Abstract

Cryptocurrencies are gaining more popularity due to their security, making counterfeits impossible. However, these digital currencies have been criticized for creating a large carbon footprint due to their algorithmic complexity and decentralized system design for proof of work and mining. We hypothesize that the carbon footprint of cryptocurrency transactions has a higher dependency on carbon-rich fuel sources than green or renewable fuel sources. We provide a machine learning framework to model such transactions and correlate them with the electricity generation patterns to estimate and analyze their carbon cost.