Bitcoin has climbed from obscurity to the ninth most valuable digital asset in the world by market capitalization in a little more than a decade. The explosive growth of digital currencies has produced billionaires and redefined the concept of earning millions of dollars. Its groundbreaking decentralized technology has generated billions of dollars in revenue, but it has also generated undesirable side effects.
Digital currencies have some environmental concerns that should be addressed to benefit our planet. People have become increasingly mindful of their capital assets and investments today. If you’re considering a Bitcoin investment, keep in mind its potential impact. Is Bitcoin environmentally destructive? Is Bitcoin causing an environmental crisis? What is the true impact of Bitcoin on our planet? Let’s answer all of these queries.
Crypto Mining – How Does it Affect the Environment Worldwide?
Many miners who gained money through Bitcoin mining and trade have fled to nations with no green energy capacity or clean energy infrastructure. It is because the use of cryptography has been outlawed in different countries, including China. Crypto-mining currently accounts for 65.4 Metric tons of carbon dioxide yearly, which is similar to Greece’s country-level emissions, Alex De Vries reported. If bitcoin’s rising trend continues to grow in the following years, that figure might eventually reach the magnitude of Australia’s emissions.
The Environmental Blight of Bitcoin
The environmental blight of Bitcoin is sparking heated discussion around the world. Undoubtedly, Bitcoin is a very energy-intensive digital asset with rising energy demand. Bitcoin’s yearly energy consumption is comparable to that of whole countries such as Malaysia, Finland, or Sweden. Moreover, its transactions typically consume over 1,700-kilowatt hours of energy per transaction. The average U.S. household uses almost twice as much energy per month like this.
Bitcoin’s Negative Ecological Impact – Energy Hungry Hardware, Electronic Wastes, And Energy Consumption
Non-renewable energy is widely used in the Bitcoin network, which drastically pollutes our planet. However, Bitcoin has influenced our environment negatively in more than one way.
- Hardware with an Energy Hogging Appetite
These days, it’s not only the mining process or the mining computers that use a lot of energy but also the machines and hardware. In comparison with the early days of Bitcoin, modern hardware consumes a lot more energy. In addition, it will become necessary to evaluate energy consumption sources during creation, transmission, securitization, and destruction if Bitcoin becomes the digital currency globally.
- Electronic Waste in Significant Quantities
Bitcoin is afflicted by more than simply energy and technical issues since it produces a substantial amount of e-waste. According to Vries’ (2019) study, specific hardware is required to process Bitcoin that gets outdated every 1.5 years. The old mining hardware will be pushed out of the marketplace eventually since the high-end versions of energy-efficient mining equipment are improving.
- Energy Consumption at a Massive Scale
The carbon effect of Bitcoin will turn sour with the rise in its prices, producing more competition for the currency and hence requiring more energy for the mining process.