Environmental Effects of Cryptocurrency Mining -II
Calculating cryptocurrency's carbon impact is more challenging. Although fossil fuels constitute the primary energy source in most nations where bitcoin is mined, miners must look for the most cost-effective energy sources in order to remain viable. According to Digiconomist, the Bitcoin network emits around 73 million tons of CO2 per year, which is equivalent to Oman's emissions. Based on statistics through December 2022, Ethereum created an estimated 35.4 million tons of CO2, before falling to 0.01 million tons upon its shift to proof of work.
Driving Factors
Greed and the fear of losing out on the next gold rush drive Bitcoin and similar cryptocurrencies to consume so much energy—these blockchains automatically modify the mining difficulty based on the strength of the networks. In other words, the lower the network's computational capacity, the lower the mining difficulty and energy consumption per transaction. However, because there is an incentive for the greatest and fastest processing power, people with the means have inundated the network with energy-hungry devices networked in such a way that they have an advantage in obtaining payments. This draws other people, and the group expands in size and energy consumption—all because the financial benefits can outweigh the early expenditures.
Countries with the biggest impact
According to University of Cambridge researchers, the majority of Bitcoin mining takes place in the United States (38%), China (21%), and Kazakhstan (12%). The Center for Strategic and International Studies estimates that coal and crude oil account for around 76% of China's energy consumption. According to 2019 EIA data, the majority of power in the United States is generated by fossil fuels. Kazakhstan mostly utilizes fossil fuels. As a result, three nations that rely significantly on fossil fuels account for around 72% of global Bitcoin mining.
Electronic Waste
Cryptocurrency mining also creates a substantial amount of electronic trash since mining hardware soon becomes outdated. This is especially true for Application-Specific Integrated Circuit (ASIC) miners, which are specialized devices created to mine the most popular cryptocurrencies. According to Digiconomist, the Bitcoin network creates around 72,500 tons of electronic garbage every year.
Water Footprint
Because of the heat created by mining operations, miners, manufacturers, and maintenance personnel have turned to water cooling to lower the expenses of keeping equipment cool. In certain situations, massive mining farms have spilled hot or warm water into lakes or other bodies of water, prompting worries about raising the average temperature or polluting these bodies by continual discharge. The outcomes of these activities are uncertain, as little study has been conducted to determine how much water is used (rendered useless) or polluted.
Conclusion
The Bitcoin network and other cryptocurrencies consume significant amounts of energy. Proponents argue that it is justifiable since virtual currencies provide financial systems to millions of individuals who do not have access to loans, banks, or other services. Some opponents argue that bitcoin is a waste of energy since it has no value. Others claim that cryptocurrency mainly benefits those who can afford expensive mining equipment, mostly enterprises and the already rich.
Regardless of whether supporters or critics agree, bitcoin has an influence on the environment. It uses energy mostly from fossil fuels. At a time when the world desperately needs to reduce its carbon footprint, the last thing anyone wants is another source of profit at the expense of the earth and its inhabitants.
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