Offset Bitcoin is an open, collaborative project with a single mission: to neutralize and reverse the negative environmental impact of the Bitcoin network.
Initially, this is to be accomplished by offsetting (i.e. counteracting) the network’s annual carbon (CO₂) emissions through donations to the world’s most effective organization(s) working on climate change mitigation.
Ultimately, the goal is to lock in a far greater amount of CO₂ than the amount released by the Bitcoin network, so that its overall impact shifts from negative to positive. It is our hope that Bitcoin will one day become a sustainable and climate-saving network.
The Bitcoin network currently has an estimated annual carbon footprint of approximately 27,000 kt (kilotons of CO₂). The most cost-effective climate change charity (Cool Earth) can protect one acre (0.004 km²) of rainforest for approximately $85, which locks in 270 tons of CO₂. Therefore, offsetting the network’s annual output of 27,000,000 tons would require 27,000,000 / 270 = 100,000 acres (405 km²) of protected rainforest. This would cost 100,000 * $85 = $8.5 million
Please note: These calculations are based on data from March 2017.
Here are a few statistics* that demonstrate why this goal is absolutely attainable:
- $8.5 million is 0.005% of Bitcoin’s total market cap ($170 billion)
- $8.5 million is 0.002% of the total cryptocurrency market cap ($400 billion)
- $8.5 million is 0.15% of the total amount raised through ICOs in 2017 ($5.6 billion)
- On average, each ICO held in 2017 raised $12.7 million
- In 2017, charities received at least $70 million in cryptocurrency donations
*Please note that the numbers provided above are estimates and subject to change based on market fluctuations and further research.
Step 1: Offset the Bitcoin network through donations to the world’s most effective organization(s) working on climate change mitigation.
To ensure that the Offset Bitcoin project has the greatest possible impact, it is important that all donations go directly to the most effective climate change organizations. Thanks to Effective Altruism, a research field that uses high-quality evidence and careful reasoning to determine the most effective ways to do good, the most effective climate change organization has already been identified. That organization is Cool Earth.
Cool Earth is a non-profit organization that works alongside rainforest communities to combat deforestation and climate change, protect ecosystems, and provide employment for local people.
“We considered more than one hundred organizations that claim to reduce greenhouse gas emissions with donations and tried to figure out which ones most cost-effectively prevent the release of one metric ton of carbon dioxide equivalent.
The charity we ultimately decided was best is called Cool Earth.”
“Helping Cool Earth to halt tropical deforestation makes a real difference.
Perhaps the biggest difference we will make in our whole lives.”
At this time, Cool Earth does not accept cryptocurrency donations. We are currently in the process of scheduling a meeting with Cool Earth, so that we can convince them to start doing so. We expect this initial meeting to take place within the next two weeks. Cool Earth has decided to start accepting Bitcoin and other cryptocurrency donations! See the March 22, 2018 update for more details.
Step 2: Devise and foster other initiatives that help turn Bitcoin into a sustainable and climate-saving network.
This step represents a long-term, multifaceted process that will require a lot of community input and collaboration, as well as input from experts in various disciplines. We will particularly require insights into the areas of climate change mitigation, energy production and consumption, decentralized network infrastructures, and decentralized application development. Eventually, we hope to be able to put together a global think tank that can establish a clear path as we move forward in our endeavor. If you believe you know someone who could help make Offset Bitcoin a success, please do share this project with them.
January 28, 2020
Cool Earth has transferred and sold its bitcoin holdings in the amount of 1.68669256 BTC, as well as its other cryptocurrency donations. The value of the bitcoin holdings at the time of the transaction was $15,304.96, enough to save 180 acres of rainforest and lock in approximately 48,500 tons of CO₂!
December 31, 2019
Although we still have a very long road ahead, we’re proud to announce that Cool Earth has received a total of 1.67267108 BTC in donations this year! Based on today’s USD/BTC rate, that’s just over $12,000! This is enough to save over 140 acres of rainforest, locking in approximately 38,000 tons of CO₂. Cool Earth also received other crypto donations in the form of 1.04565409 litecoin (LTC), 0.23106783 ether (ETH) and 100 tether (USDT).
December 17, 2019
Cool Earth and the Offset Bitcoin project were featured in an article on crypto donations published by MyEtherWallet (MEW), the world’s most popular wallet interface for the Ethereum network. In this article, the MEW team announced that they had made a donation to Cool Earth as part of their 12 Days of Christmas Giving campaign.
June 13, 2019
A recent study on Bitcoin’s CO₂ emissions, conducted by the Technical University of Munich (TUM) in Germany, claims that the annual amount of CO₂ emission caused by the Bitcoin network is approximately 22 megatons, significantly less than the 27 megatons that we based our initial calculations on.
June 5, 2019
According to this month’s edition of The Bitcoin Mining Network report, published by a report published by London-based CoinShares, over 74% of the electricity that powers the Bitcoin network comes from clean, renewable energy. If true, this would bring our (moving) 2017-based target of $8.5 million down to $2.21 million.
May 01, 2018
Cool Earth has set up a brand new crypto donation page on their website. It can be found here:
Cool Earth now accepts bitcoin (BTC), bitcoin cash (BCH), litecoin (LTC) and ethereum (ETH) donations! In the future, they intend to integrate cryptocurrency donations into their standard donation form.
April 20, 2018
BREAKING NEWS: Cool Earth has decided to officially endorse the Offset Bitcoin project! This first official partnership is a huge step forward and marks the beginning of the Offset Bitcoin network, which will soon include other effective environmental organizations.
March 28, 2018
Good news! Cool Earth will be setting up its very first cryptocurrency wallets today.
March 26, 2018
We had another very successful meeting with Cool Earth today and made some excellent progress. After first reviewing current legislation on cryptocurrency donations within the UK (which we know is favorable), Cool Earth intends to start accepting bitcoin (and other cryptocurrency donations) as soon as possible. The organization has again shown strong interest in the Offset Bitcoin project and will decide on the extent of its direct involvement during their next general meeting.
March 26, 2018
A second meeting with Cool Earth has been scheduled on Monday the 26th of March at 3:30 PM (GMT).
March 24, 2018
The article Offset Bitcoin: A Project Designed to Make Bitcoin Carbon Neutral was published on Steemit by Daan.
March 22, 2018
We are very excited to announce that the initial meeting with Cool Earth was a huge success! Cool Earth has decided to start accepting Bitcoin and other cryptocurrency donations, making it the first major climate change charity to do so and, importantly, the most effective one. Furthermore, the organization’s director and fundraising officer have shown strong interest in the Offset Bitcoin project. A secondary meeting will be scheduled soon.
March 21, 2018
An initial meeting with Cool Earth has been scheduled on Thursday the 22nd of March at 2 PM (GMT).
Now that Cool Earth has decided to accept crypto donations (see the March 22, 2018 update), it’s time to start promoting Offset Bitcoin on a much larger scale. Cool Earth has also decided to actively endorse the project and promote it within its existing donor network (see the May 01, 2018 update) and in the future, we will start forming partnerships with other effective environmental organizations. Whether we can form additional partnerships or not, we will need all the help we can get to promote the project throughout the crypto space. Please have a look at the various ways in which you can help:
1. Share your thoughts, skills, resources, contacts (or anything that you think may be beneficial to this project)
Here are several things that you can do:
- Use social media platforms to tell other people about Offset Bitcoin
- Write about Offset Bitcoin on your blog or on other websites/platforms
- Design materials for the project’s website and its other outreach channels (please contact us for more details)
All articles, translations, graphics etc. will be linked to on this website.
2. Send a crypto (or regular) donation to Cool Earth
Bitcoin network energy consumption:
At this time, information on Bitcoin’s energy consumption is scarce and varies significantly between different sources.
To improve our decision making, additional research will be required.
As mentioned above, Cool Earth was identified as the most effective climate change charity through careful analysis conducted by experts in the field of philanthropy. Click here to read the report published by the Effective Altruism organization Giving What We Can.
We are not employed or financially compensated by any of the organizations that we establish partnerships with. We are independently trying to raise funds for effective climate change mitigation charities. As explained above, all of the funds we intend to raise will go directly to those organizations. Those who contribute to the Offset Bitcoin project do so on a voluntary basis. None of the contributors will receive any financial compensation for their efforts.