During recent years, there is a widespread belief among researchers and academicians that the Bitcoin usage is imposing an additional burden on the environment inducing climate change.Although several studies have focused on issues related to the energy consumption of the basic cryptocurrencies, an open question remains regarding the environmental depiction of the Bitcoin. By resorting to Bayesian analysis and quantile cointegrated vector autoregression (CQVAR) model techniques, this study seeks to disentangle the driving forces that shape the carbon footprint of the Bitcoin. The sample used in the empirical analysis consists of a daily panel dataset covering 51 developing and developed countries over the years 2016-2018. The empirical findings corroborate a causal effect between the use of the Bitcoin and its underlying carbon dioxide emissions generated by the increasing energy load. The Bayesian CQVAR is associated with positive marginal posterior means for most of the covariates of the model across all the estimated quantiles. In contrast, there is a negative and statistically significant relationship between Bitcoin miner's revenue and carbon emissions, uncovering a multimodal distribution pattern of the marginal posterior densities which is stronger at higher than in lower quantiles. This finding, suggests that the lower (higher) miner's Bitcoin revenues the more abrupt (gradual) the effect on environmental degradation. Therefore, a sustainable energy strategy focusing on the penetration of renewable energy sources along with the use of energy-efficient mining hardware will alleviate the carbon footprint of the Bitcoin.
