Over the past few decades, the cryptocurrency industry has grown exponentially. With this growth comes increased environmental pressure. And if the industry doesn’t start making some profound changes, it could have disastrous consequences.
CRYPTOCURRENCIES’ IMPACT ON THE ENVIRONMENT
Undoubtedly, cryptocurrency has brought wealth and opportunities that have a huge impact on the global economy. Bitcoin alone has a market cap of more than $300 Billion, while combined cryptocurrencies are worth more like $900 Billion.
Perhaps you are curious how digital currency impacts the environment. It is not necessary to have physical mines or factories in order to create cryptocurrencies. It all comes down the way that cryptocurrencies are mined.
Cryptocurrencies are created through a process called “mining.” This process uses Proof of Work (PoW) algorithms, which require computers to solve complex math problems to validate transactions and add new blocks to the blockchain. The miners receive a certain amount in cryptocurrency as a reward.
But, it consumes a lot energy. Bitcoin mining can consume 150 terawatt hours.