Obviously, if the mining is done off-earth anywhere, it will not contribute to the CO2 problem, =ASSUMING= that it does not require on-earth energy resources to put the power generation there.
Crypto mining also stops being a problem when 100% of on-Earth power generation is de-carbonized — in that situation, it is no longer diverting energy generation that could be used to displace/reduce remaining CO2-spewing energy generation.
The problem is: While CO2 power generation is still active, and especially when it dominates, every kW of electricity used for crypto mining either directly generates CO2, or it uses clean generation that could otherwise (but now does NOT) displace a kW of CO2-based generation capacity.
For example, if the Texas grid became ~100% wind and other clean-source-powered, then BTC mining in that grid would not in any practical sense consume clean power that could otherwise displace dirty power. The 100kW you use to feed your miners could in theory be used to reduce production from a nearby coal plan in Oklahoma, but in practice, since the grids are not connected, they aren't, so that is probably the right scale.
That said, if it gets big and the miners are consuming enough production of solar panels and wind turbines to slow clean energy buildout on other grids, that's the second order of the same problem.
So, maybe everyone with crypto should, instead of convening to buy the constitution or a basketball team, go fund the takeover and conversion of an entire grid to clean energy, and build all the miners there.
