Experts Warn: Cryptocurrency Mining's Shocking Side Effect Poses Serious Risks

Initially, cryptocurrency was considered a specialized idea; however, it has gained widespread acceptance as an increasing number of individuals recognize the advantages of having financial systems without central authorities.

However, these cryptocurrencies have genuine environmental consequences, and energy specialists as well as conservationists have begun raising concerns over the harm they may inflict.

What is cryptocurrency mining?

Cryptocurrency mining entails confirming and recording transactions onto a public record known as a blockchain, achieved through high-performance computers tackling intricate puzzles. These computations introduce fresh digital currencies into the market. Known as proof-of-work (PoW), this process mandates substantial computational resources for verifying entries within the blockchain in exchange for financial incentives provided by the system.

As the nonprofit Earthjustice explained It basically comes down to a competition among " millions of computing devices" to be the first to solve the problem, where miners employ increasingly faster machinery and consume more power to secure rewards as the cryptocurrency’s value goes up.

What makes cryptocurrency mining significant?

The computers used for cryptocurrency mining require massive amounts of energy. In fact, the energy consumption from crypto mining can exceed the annual usage of certain nations like Argentina, according to Fengqi You, a Cornell professor specializing in energy systems. told WAER .

Even though some sectors have begun utilizing renewable sources for their mining operations, most continue to depend on fossil fuels like oil and natural gas—substances notorious for significantly exacerbating global warming.

Stream now: Just how harmful is a gas stove for your home’s indoor air quality?

According to a report from the United Nations University , the carbon footprint of Bitcoin mining between 2020 and 2021 was comparable to combusting 84 billion pounds of coal or operating 190 million cars. natural gas The U.N. scientists indicated that 45% of the electricity used globally for Bitcoin mining originates from coal sources. natural gas made up 21% of the network's energy supply.

Meanwhile, only 2% and 5% of the electricity needed for Bitcoin mining came from solar and wind energy (though these numbers have likely increased since 2021).

If the energy source isn’t renewable—think coal, natural gas, etc.—it leaves behind a carbon footprint, harms the environment, and contributes to climate change. This is undesirable, correct? In reality, numerous operations rely heavily on non-renewable resources. said , per WAER.

Cryptocurrency mining is likewise having adverse effects on communities globally. For example, people residing close to a A Bitcoin mining operation located in Granbury, Texas , have filed a lawsuit against the company, claiming the excessive noise has caused permanent hearing loss, insomnia, and other health problems. Residents in Memphis, Tennessee, have expressed concerns about how a recently launched cryptocurrency mining operation This will affect their well-being and the city’s water sources, since mining consumes massive quantities of water.

Do you believe that America faces an issue with plastic waste?

Definitely

Only in some areas

Not really

I'm not sure

Click your choice to see results and speak your mind.

In what ways the cryptocurrency sector is evolving towards greater sustainability.

Certain cryptocurrency platforms are attempting to enhance the sector’s image as being more environmentally friendly. A Swiss firm, Fedrok is putting money into carbon credits, and Lightchain AI is dedicated to eco-friendly cryptocurrency practices, stating that this commitment includes utilizing solar and wind energy alongside employing artificial intelligence to minimize energy consumption.

Professor You additionally thinks that investors ought to be made aware of the environmental consequences associated with buying cryptocurrencies.

I hope that whenever someone buys a Bitcoin, they can simultaneously view the carbon footprint linked to that specific Bitcoin; this is achievable, said .

If you want to invest in cryptocurrencies, consider investing in more eco-friendly currencies, such as Ethereum , or clean economy stocks that benefit the planet.

Join our free newsletter for good news and useful tips , and don't miss this cool list of easy ways to help yourself while helping the planet.

Specialists sound the alarm about the alarming consequence of cryptocurrency mining: 'It’s not advisable.' first appeared on The Cool Down .