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According to a new study, Bitcoin has high CO2 emissions. The cryptocurrency Ethereum, on the other hand, performs significantly better. (symbolic image)
Keystone
A Bitcoin transaction generates around 486 kilograms of CO2. These are the findings of a new study conducted by Lucerne University of Applied Sciences and Arts and Swiss Economics on behalf of the German Federal Environment Agency.
But not every cryptocurrency has such a high environmental impact. According to the study, a transaction involving Ethereum - the second-largest cryptocurrency - only generates 0.003 kilograms of CO2 per transaction. That is less than a transfer with the online payment service PayPal.
Bitcoin's high CO2 emissions are linked to what is known as "mining". This involves thousands of computers around the world competing to confirm new transactions and generate new bitcoins. This competition requires large amounts of electricity.
Ethereum, on the other hand, largely dispenses with this energy-intensive process. As a result, energy consumption and therefore CO2 emissions are significantly lower.