"What are the environmental impacts of cryptocurrency?" Written by Paul Kim; edited by Jasmine Suarez Mar 17, 2022, 5:21 PM EDT, Business Insider.
Image: Ethereum, the second biggest cryptocurrency on the market, plans on changing to proof of stake mining in the future. Rachel Mendelson/Insider
Topics: Applied Physics, Computer Science, Cryptography, Economics, Environment, Star Trek, Thermodynamics
In what is now “old school Internet” (or web surfing for fogies), I will get a friend request from someone on Facebook/Meta who is in cryptocurrency. I quote myself in the first paragraph of what I refer to as my “public service announcement):
I am not INTERESTED in crypto. As someone who worked with cryptography as a matter of national security, holding a TS/SCI clearance, when you start your message with “let me explain to YOU how crypto works,” expect to get blocked.
Invariably, I still do, which makes me wonder if they read the PSA or think “they will be the one” to sign me. News flash, pilgrim...I now have another pertinent reason to ignore your blockchain solicitations, actually, several good reasons.
Every time we turn on a light in our homes, there is a thermal budget that we are being charged for (that's how Duke Power makes its money in North Carolina and Perdernales Electric Cooperative in Texas). Bitcoin/Blockchain (I think) caught the imagination because it seemed like a "Federation Credit" from Star Trek, where no one explains fully how a society that is "post-scarcity" somehow feels the need for some type of currency in utopia. It's kind of like magic carpets: you go with the bit for the story - warp drive, Heisenberg compensators, Federation credits. The story, and if you are thoroughly entertained after the denouement, not the physics, is what matters.
You might not be extracting anything from the planet directly, but Bitcoin mining has a massive impact on the planet’s environment.
Mining resources from our planet can take a devastating toll on the environment, both local and global. Even beyond this, using the resource could cause disastrous effects on our planet, and dependence on a single resource can wreak havoc on a country’s economy. Yet, many of these resources are needed for our daily lives -- sometimes as a luxury, sometimes as a necessity. Any responsible country or company should always take pause to consider what impact mining of any kind can have on the planet.
It turns out that these days, one type of mining might be the worst for Earth’s environment: bitcoins. Yes, the “mining” of virtual currency makes its mark on our planet. The unequal distribution of Bitcoin mining across the globe means that some countries are making a much larger dent into the planet’s climate and environment than others ... all for a “resource” that is far from necessary for our society.
Bitcoin mining uses a lot of computing power to solve the cryptographic puzzles that lie at the heart of the industry. As of today (October 30, 2023), each Bitcoin is worth over $34,000, and with the multitude of other cryptocoins out there, using computers to unlock more can be a profitable endeavor. Almost half a trillion dollars of the global economy runs on these “virtual currencies.”
Worst Kind of Mining for the Environment? It Might Be Bitcoin. Erik Klemetti, Discover Magazine
Comments