Cryptocurrency And The Environment
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Until the fallout between Tesla and Bitcoin most people probably didn't know how much impact mining had on the environment. Thanks to Elon Musk and his push for his favorite coin lately even though this doesn't sit well with many, Elon seems to care less. Until last week did most people discover that Bitcoin produces 36-95 megatons or carbon dioxide annually and in a couple of years may increase the global temperature by 2 degrees Celsius. Environmentalist have also joined the show by showing red flags due to the potential harm bitcoin mining will have on the environment pretty soon.
While some might not agree and think it is business strategy, is it really? All cryptocurrencies have damaging effect in the environment but on different levels( i.e rate of mining and transactions). Cryptocurrency transactions are recorded by a distributed miner network, incentivized by block rewards. These are specialized computers which have to record new blocks which can only be created by solving cryptographic puzzles. In the case of bitcoin, the higher the price and transactions, the higher the mining and so the impact on the environment. This is mainly due to the fact that majority of bitcoin is mined in China, and they account for 75% of bitcoin blockchain operation around the globe. China makes use of cheap electricity, coal and there in lies Elon's problem.
By dropping bitcoin from it's payment options, bitcoins rate dropped as low as 17% wiping over 365 billion dollars in market value, this also affected Ethereum which has continuously dropped over time. It is worthy to note that if Bitcoin was a country it would be on the list of the top energy consumers of the world annually at 120 terawatts-hours. Producing more carbon emissions than even the largest airline in the world "American Airlines". Placing it at the top of the list of the most energy consuming coin, followed by Ethereum at 17 Terawatts-hours. It is only a matter of time before other altcoins start causing just as much carbon emissions due to the large number of people migrating to the crypto space.
For now the least damaging coin is XRP at 0.007 kilowatt-hour, other coins like Litecoin is currently at 19 kilowatt-hour and Dogecoin, Elon's favorite is at 0.12kwh. While the environment may suffer, the way most cryptonians make profit is by the coin value rising but that means more energy consumption and an increase in global warming by a couple more degrees in years to come. A loss-win situation for the world, perhaps shifting to more renewable source of energy would take this burden off our chest for example solar energy or wind. While many may find it difficult to believe , the figures are real and it's time we moved to alternative sources of energy.
The consumption of energy by computers or other cryptographic systems is irrelevant compared to what is consumed for example in the military field that leaves no benefits to people or what other places like casinos or slot machines spend, because the problem as you mention it. Pointing out what the Bitcoin uses is a strategy of war against these by those who paradoxically consume more, and in the background solve it is simple, change the use of fossil fuels to generate it.
Greetings @valchiz, actually BTC mining has increased global warming and this in turn negatively impacts the environment, but in my opinion I think that is not the main reason why Elon Musk is attacking the cryptocurrency market.
Have you ever wondered what is the environmental impact that TELSA generates to the environment with the manufacturing of its cars?
Hence my opinion is different.
It is the same rhetoric as in the 2017 bull run, just a pure lie and a way to make a quick buck for his own pocket.
I believe there are ugly things everywhere. For example, the batteries of electric cars are said to have a terrible effect on the environment, because getting rid of them is very costly and very damaging to the society.
Of course, it would have been better if Bitcoin mining didn't use energy at all, and I clearly support Ethereum turning into a Proof of Stake coin instead of Proof of Work... but once again, just accusing Bitcoin of being terrible for the environment without looking further and digging deeper, that is just throwing dirt at someone else without doing enough research!
It is very true, even though we hate the fall in prices of our favourite coins. We need to think of earth, because that's where we would spend the money we are making off these coins. It is high time, these projects look at some other source such as the solar energy you mentioned. Thanks for sharing this awesome article @valchiz