Mining Bitcoin is 3.5 times more expensive than digging up gold

Creating the cryptocurrency uses a lot of energy, but fans have always argued digging up metal out of the ground has a bigger environmental impact.

| More on:
a close up of a woman's face looks skywards as she is showered in a sea of graphic symbols of gold and silver coins bearing the bitcoin logo.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Bitcoin (CRYPTO: BTC) fans have often spruiked the cryptocurrency as a store of value when other assets like shares and real estate hit turbulence.

This is a role traditionally performed by gold for many centuries.

"Amongst retail investors it is increasingly regarded as a 'safe haven' asset, similar to gold," said DeVere Group chief executive Nigel Green.

But one concern that's become prominent in recent years is the amount of computing power required to mine new Bitcoins.

Mining involves solving extremely complicated mathematical calculations on very powerful computers. This requires a tremendous amount of energy, both to power the computers and to house them.

Some Bitcoin mining data centres are deliberately located in cold locations like Siberia to use less energy to cool the data centres.

All this leads to the question of the environmental impact of creating new coins.

It's not a physical asset but has physical impacts

In response, Bitcoin bulls have always argued there is a greater environmental cost to mine gold.

Gold obviously has to be physically discovered then dug up out of the ground and processed.

But now it seems that argument is on shaky ground.

A new study has shown how generating Bitcoin takes up more energy than mining the same value of gold out of the earth.

According to the Bankless Times, mining US$1 worth of Bitcoin uses 17 megajoules of energy, while digging up the same value of gold costs 5MJ.

"Although both assets consume quite a bit of energy, Bitcoin's consumption is comparably higher since the network still needs electricity to complete transactions and continue functioning," reported the Times.

The cryptocurrency fares even worse when the impact is translated to the carbon footprint.

"Following the surge in the number of users, Bitcoin's carbon footprint is currently about 15 times that of gold," stated the Bankless Times.

"Mining 1 Bitcoin emits about 191 tonnes of carbon dioxide, while mining gold worth 1 Bitcoin emits about only 13 tonnes."

What does 191 tonnes of carbon dioxide mean exactly?

According to the Times, that's the same amount of carbon released from 1.6 million Visa Inc (NYSE: V) transactions.

China's crypto ban made Bitcoin even dirtier

As the environmental concerns about Bitcoin mining have come into public consciousness, some industry players have taken steps to address the problem.

Many have promised to only use renewable energy sources to power the computers.

But China's ban on cryptocurrencies last year was a major setback in this movement.

"Before the ban, miners in China would use hydropower to mine Bitcoins, especially during the wet season," stated the Times.

"This helped a great deal with keeping Bitcoin mining green."

Should you invest $1,000 in Bitcoin Aud right now?

Before you buy Bitcoin Aud shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Bitcoin Aud wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 6 March 2025

Motley Fool contributor Tony Yoo owns Bitcoin. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and has recommended Bitcoin. The Motley Fool Australia owns and has recommended Bitcoin. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Cryptocurrencies

Bitcoin symbol with a rising green arrow.
Cryptocurrencies

Bitcoin surges: How to invest through the ASX

Wanting to gain exposure to the cryptocurrency? Check out these two options.

Read more »

Bitcoin coins in a pile.
Cryptocurrencies

Here's what owning Bitcoin for 7 years has taught me

Bitcoin has been a fantastic investment for me, but not without its pitfalls.

Read more »

A woman holds a bitcoin token in her hand as she smiles at the camera in the background.
Cryptocurrencies

Bitcoin price surges on Donald Trump's cryptocurrency strategic reserve update

The Bitcoin price hit all-time highs of US$109,115 on the day Trump was sworn into office.

Read more »

Bitcoin coin with a rising arrow.
Cryptocurrencies

The Bitcoin price soared 120% in 2024. Could it repeat that performance in 2025?

Bitcoin soared by 150% in 2023 and 120% in 2024, so many crypto investors are expecting it to once again…

Read more »

Two happy excited friends in euphoria mood after winning in a bet with a smartphone in hand.
Cryptocurrencies

Why Bitcoin, Ethereum, and Dogecoin just surged

Today's CPI report turns out to mean a great deal to crypto investors.

Read more »

Bitcoin coin with a rising arrow.
Cryptocurrencies

Bitcoin price smashes new record highs as market value tops US$2.1 trillion

Bitcoin just soared to new all-time highs. But why?

Read more »

a businessman rips open his shirt superman style to reveal the bitcoin logo on a superhero style lycra suit under his clothes.
Cryptocurrencies

Bitcoin price reclaims US$100,000 after AMP reveals an investment

A rising Bitcoin price could validate AMP’s recent investment decision.

Read more »

person dancing in bitcoin spectacles wearing a gold outfit with hands up.
Cryptocurrencies

Why Bitcoin, Ethereum, and Dogecoin just popped again

Here's what gave investors confidence...

Read more »