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With anything that involves technology, there will be a significant price that must be paid. Mining cryptocurrencies that use server farms make use of huge electricity amounts. In many places, generating that power will release untold carbon dioxide tons, the major culprit for global warming, violent weather, and so on.
A bigger spotlight is thrown on the climate effect of cryptocurrency trading. Many investors are worried about the sustainability of this sector and how it will be adapting to new regulations on emissions of carbon dioxide.
Get an idea of unsustainable cryptos
- There are some cryptos that are the main offenders when it comes to emissions.
- Bitcoin, Bitcoin Cash, Ethereum, Cardano, and Litecoin are the 5 cryptos that are hugely responsible for the change in the climate.
- Bitcoin has used the most energy of a crypto in 2020.
- It produced 59.9 million tons of carbon dioxide in only 12 months.
- To offset such a huge figure, 299.6 million trees need to be planted.
- Thus Bitcoin is a hugely unsustainable crypto that will require reforming the way it actually functions for adapting to a world of low carbon.
- Bitcoin and other POW cryptos need large energy amounts more than what is used by whole countries for performing all computations linked with the mining of crypto.
- Such energy requirements aid in securing cryptos by making it highly costly for any single party to do network hijacking.
- The US is the largest country for mining Bitcoin.
- It accounts for the mining activities of Bitcoin for 42.7 %.
- Electronic wastes of around 37 kilotons are yearly produced as Bitcoin mining’s by-product.
- Few cryptos do not use crypto mining.
- But it is unlikely that Bitcoin will be changing its consensus algorithm.
- It is highly complicated to calculate the crypto carbon footprint.
- In many countries where crypto is mined the main energy source is fossil fuels.
- Miners need to seek out the cheapest energy sources for remaining profitable,
- In a lot of cases, it means to rely upon new alternative installations of energy.
- Depending on the rate of mining hash’s geographical distribution, it is estimated that the network of Bitcoin is highly responsible for around 114 million tons of CO2 each year.
- It equals the amounts that are generated by the Czech Republic.
- Recently the network of Bitcoin drew around 46.1 % of its energy from some renewable sources.
- After the crackdown of China in 2021, it changed.
- Thus miners were forced to relocate to countries that are more dependent on fossil fuels such as the US and Kazakhstan.
- So the Bitcoin network’s renewable share fell from 46.1-to 25.1 %.
- According to research most mining of Bitcoin; almost 42% last year happened in the US after the ban on crypto by China.
- The burning of fossil fuels generates most electricity in the US.
- Another country getting most of the energy from fossil fuels is Kazakhstan.
- It accounts for 18 % of the Bitcoin mining worldwide.
- Thus these two countries that are highly fossil fuel dependent are mainly responsible for a large number of Bitcoin mining in the world.
- Crypto mining generates a large amount of electronic waste.
- This is because mining hardware becomes obsolete fast.
- It is true for many miners that are specialized machines mainly designed to mine the most well-known cryptos.
- The network of Bitcoin approximately generates electricity waste of 37 thousand tons every year.
- Ethereum mining produces over 62.9 million tons of emissions of C02 a similar amount as both Montenegro and Serbia combined.
Conclusion
It presents a huge conflict for cryptocurrency investors. If any investor cares about the earth or climate change, they should never support any currency that contributes to a crisis globally. Remember that no one is against the use of crypto.
They have a great place in today’s finance. But certainly, there needs to be some regulation for ensuring the protection of investors and stopping scamming by criminals.
If any crypto miner is capable of moving towards the global aim of planting more trees, restoring wetlands or prairies, and decarbonizing buildings, agriculture, transportation, and manufacturing you must dig in for a perfect solution.
