Cryptocurrency is also known as crypto or crypto-currency. It is a form of digital currency. The key purpose of cryptocurrency is to provide a medium of exchange with secured cryptography in trading. The record of online transactions, verification of coin ownership, and transfer related to individual coin ownership are saved in the ledger – a computerized database.
Cryptocurrency such as bitcoin is used for buying goods and services and to earn profit through trade. Bitcoin is getting popular in digital currency with the thought that it would be more valuable in the future as compared to other cryptocurrencies. More and more people are investing in cryptocurrency. The values keep fluctuating.
Cryptocurrency mining involves the use of electricity and computing. One bitcoin is mined in nearly 10 minutes and according to a news source 121 Terawatt-hours energy is used annually for bitcoin mining.
NEGATIVE EFFECTS OF CRYPTOCURRENCY ON THE ENVIRONMENT
Cryptocurrency is gaining importance day by day despite the fact that it is causing environmental pollution. According to published research, the trending cryptocurrency will make its place in the world although it is contributing to environmental degradation. The cryptocurrency is leaving behind the traditional currency.
Another published research reported a strong relationship between carbon emissions and revenue generation through biotin mining.
The negative effects of cryptocurrency are mentioned below.
1. High Energy Consumption: Cryptocurrency mining costs expensive energy and the electricity that is used for bitcoin mining could be greater than the net energy consumption of a country.
2. Carbon Emissions: The carbon emissions due to cryptocurrency mining are huge because coal is used as fuel for energy production that in return produces electricity. Check out Top Companies Contributing to World’s Third Carbon Emission
3. Global Warming: The emissions of carbon dioxide during fossil fuel combustion lead to global warming and the temperature of the Earth’s surface is already increasing due to other anthropogenic activities.
4. Climate Change: Cryptocurrency mining is also contributing to climate change. The use of expensive energy, resource exploitation for energy production, all these steps are participating in triggering human-induced climate change.
5. E-Waste Generation: Cryptocurrency mining is associated with e-waste generation that itself is a huge environmental issue. Third-world countries are used as dumping sites for e-waste by rich countries.
SUSTAINABILITY – A SOLUTION TO ENERGY CONSUMPTION IN CRYPTOCURRENCY MINING
Sustainability is a suggested solution to energy consumption in cryptocurrency mining. Renewable energy sources such as solar power could be utilized for electricity generation. Replacing fossil fuel combustion with renewable energy sources is need of the time because of the negative impacts of climate change. Sustainable approaches should be followed in order to tackle climate changes and lessen the increasing temperature of the Earth’s surface.
Cryptocurrency mining has its significance in the economy of a nation. What raises questions and concerns among environmentalists is that mining rigs are moveable. The countries could be specified for bitcoin mining but the fact is where energy consumption is affordable there would be cryptocurrency mining. Fossil fuel consumption releases greenhouse gases and the whole world is now and then experiencing the negative consequences.
Also, check out Potential of Growing Recycling Business in Pakistan
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– MS Environmental Science
– Content Writer
Researcher, Nature Lover, and Environmentalist