Today, the issue of environmental sustainability stands out as a major issue of discussion. Almost every other individual in the world understands that they should be incorporating the most appropriate strategies to help enhance the well-being of the environment. Therefore, any economic activity that derails such efforts does not play a role in today’s world.
The Emergence of Cryptocurrency
However, the growth of technology has seen the emergence of cryptocurrency as a digital currency that seem to be gaining momentum. It’s essential to communicate that these innovations have become fundamental in changing various financial aspects. However, some researchers have already established that cryptocurrency is not good for the environment for the following reasons.
Huge Energy Consumption
As the current data shows, a single Bitcoin transaction requires the same amount of electricity that an average U.S. household consumes daily. Also, the process of mining Bitcoin is quite energy-intensive. This means that if cryptocurrencies keep growing at the current rate, they could consume as much electricity as the entire world by the end of 2019. This is a dangerous aspect that individuals can continue to observe while remaining silent.
Negative Impact on Climate Change
The increased use of cryptocurrency also has a direct bearing on climate change. For instance, the carbon footprint for a single Bitcoin transaction is estimated to be about 210 kilograms. This is because most cryptocurrencies are mined using coal-based power plants that release large amounts of greenhouse gases into the environment.
Lack of Regulation
Another significant challenge that makes cryptocurrency bad for the environment is the lack of regulation. Unlike other financial institutions, cryptocurrencies are not subject to any regulatory body. This means there is no way to control their use and ensure that they are used sustainably. As such, their environmental impact is likely to continue increasing in the future.
From the foregoing, it’s evident that cryptocurrency is not good for the environment. The high energy consumption, negative impact on climate change, and lack of regulation are some key reasons why this is the case. The world must find sustainable alternatives to cryptocurrencies if it is willing to protect our environment.
Dil Bole Oberoi
