Climate change’s market understanding suggests that cryptocurrency mining increases sea levels and energy costs
Global regulators seem to be exploring ways to control climate change. It’s believed that cryptocurrency mining contributes towards depletion of energy. From a global perspective, cryptocurrency mining’s discharge of greenhouse gases has reportedly been raised as a concern.
According to Earthjustice, a non-profit organisation, cryptocurrency mining’s energy exhaustion in United States resulted in an additional 27.4 million tonnes worth of carbon dioxide emission for 2021-22. The platform further stated that cryptocurrency mining consumes half the electricity usage of global banking industry. “I believe cryptocurrency mining is taking a toll on global climate changes due to its energy consumption. The process of mining cryptocurrencies requires solving mathematical equations using computers, which require an amount of energy to operate,” Vipin Vindal, CEO, Quarks Technosoft, a web application development company, told FE Blockchain.
Climate change’s market understanding suggests that cryptocurrency mining increases sea levels and energy costs. Insights from Cambridge University, an educational institution, has highlighted that Bitcoin mining consumes 121.36 terawatts per year. The university also mentioned that renewable sources supply 39% of Bitcoin mining’s energy utilisation, which can have bad effects on ecosystems and biodiversity. For example, in previous developments, estimates showed that China’s Bitcoin mining landscape can give rise to 130 million metric tons worth CO2 by 2024.
“I believe energy consumption and carbon emission pose grave consequences for the environment. Although the returns on cryptocurrency investments can be high, investors need to consider the long-term implications of their activities, including the environmental impact,” Shrikant Bhalerao, founder and CEO, Seracle, a blockchain cloud company, said.
To curb cryptocurrency-based climate change effects, global researchers have vouched for government and regulatory authorities’ infliction of environmental rules on the industry. Initiatives such as Crypto Climate Accord intends to make blockchains functional on 100% renewable power by 2025, and remove net zero emissions from cryptocurrency industry by 2040. Reportedly, companies such as DMG Blockchain Solutions, Northern Bitcoin, Galaxy Digital, among others, have inculcated cryptocurrency practices to reduce climate change implications.
“The future of the coexistence of cryptocurrencies and climate change is uncertain. However, as awareness of the environmental impacts of mining grows, it is likely that sustainable practices will become the norm in the industry,” Sathvik Vishwanath, co-founder and CEO, Unocoin, a cryptocurrency exchange, concluded.
Source:indianexpress.com