This paper investigates the carbon emission flows of Bitcoin blockchain operation in China using a simulation-based model. It finds that without policy interventions, annual energy consumption will peak in 2024 at 296.59 Twh, generating 130.50 million metric tons of carbon emissions. This surpasses the annual emissions of countries like the Czech Republic and Qatar. The study shows that site regulation policies, which incentivize changes in energy consumption structure, are more effective in limiting carbon emissions than punitive carbon taxes.
