Could Norwegian fjords and waterfalls stop bitcoin from destroying the planet?

Bitcoin mining consumes more electricity than the entire nation of Ireland, which climate experts warn could push global warming above 2C in just two decades. Anthony Cuthbertson visits an underground operation in Norway that offers an unusual solution

Thursday 13 December 2018 10:45 GMT
Comments
As the cryptocurrency’s popularity has grown, so too has its energy demands
As the cryptocurrency’s popularity has grown, so too has its energy demands

Deep beneath a mountain on the fjord-filled fringes of Norway, tucked within 28 kilometres of tunnels, are 15 shipping containers. Stacked three-high in neat rows, each container is filled with millions of dollars’ worth of computers that pump out thousands of dollars’ worth of digital currency each day through a process of electronic mining. Together with countless other operations around the world, these containers form the foundation of the bitcoin network.

Standing inside one of the 40-foot containers, the temperature is 45C and the roar of the cooling fans is so loud you can’t hear yourself speak. Unlike traditional money, bitcoin doesn’t have a central government or bank in charge of distributing and backing the currency. Instead, it relies on the processing power of computers to solve mathematical problems to generate new units of the cryptocurrency, while simultaneously verifying and recording any transactions on the network to an online ledger called the blockchain.

When bitcoin was first conceived in 2009, only a handful of regular computers were used and it was possible to mine the cryptocurrency from a laptop. But as its popularity grew, so did its energy needs. Almost a decade later, millions of these machines are required to support bitcoin and the 2,000 other cryptocurrencies that have since come into existence. Altogether, they consume more energy than the entire nation of Ireland.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in