Cryptocurrency's Dirty Climate Impact
Bitcoin, the world’s most popular cryptocurrency, is enjoying another surge in popularity. Major brands like Paypal and Starbucks are beginning to accept cryptocurrency as of this year, cementing its place in the global economy. Though the long-term outlook for cryptocurrencies is uncertain, their mainstream popularity today necessitates a look at their ugly environmental implications.
A Bitcoin mining data center (Benjamin Mejia | Blockstream)
Cryptocurrency mining uses exorbitant amounts of energy, and in a time where people are pushing for sustainability and climate consciousness, its environmental impact continues to fly under the radar for the most part. A single Bitcoin transaction burns through the same amount of energy as the average American family does in a month, and its annual carbon output is roughly that of the entire country of New Zealand. Much of Bitcoin’s mining is done in China, which still relies heavily on coal burning. Some scholars predict that Bitcoin alone could raise the Earth’s temperature by 2 degrees Celsius within 30 years. As Bitcoin and other cryptocurrencies rise rapidly in price, public interest and demand increase as well, meaning their energy consumption could surge exponentially in the future.
A number of supposedly climate-conscious politicians, including 2020 presidential candidate Andrew Yang, have voiced their support for cryptocurrencies. Yang, currently running for mayor in New York City, promised to turn the city into a crypto-mining hub if he is elected. Yet as part of his presidential platform, Yang acknowledged the US’ failure to adequately combat climate change and outlined progressive policy positions that advocated for environmental protections, even voicing support for the Green New Deal. Policy inconsistencies like these cannot be tolerated, especially from lawmakers who promise to protect the planet. Promoting cryptocurrency and crypto-mining, given their clearly devastating environmental impact, is simply irresponsible, uninformed and dangerous.
The concept of digital currency is still so new and poorly understood that cryptocurrencies have yet to be properly regulated. Going forward, there are a number of ways for governments to prevent the environmental toll cryptocurrency mining takes on the planet. Experts have suggested imposing transaction fees and limiting public access to powerful computer setups that are used for mining. Quebec, Canada raised the prices of electricity for cryptocurrency miners in 2018 — regulations like this could discourage mining, perhaps protecting the environment. Though digitization is touted as the way forward for many industries, cryptocurrencies’ nasty climate impact actually makes them less forward-thinking and environmentally conscious than physical currency. Advocating for their use as a lawmaker and investing in them as a private citizen inflate the price and demand for cryptocurrencies, perpetuating damage to the planet.
