Cryptocurrency mining and its environmental problems
Since the last few years, cryptocurrencies are taking over the internet, news and some of the world’s most important entrepreneurs heads. The world of cryptocurrency is huge and its approximately $1.72 Trillion in market capital according to Coin MarketCap.
Even though the idea of cryptocurrency to be used as a currency or a replacement to the existing currencies around the globe has never been fulfilled yet, the market is booming and the hopes of investors are high. When the world famous cryptocurrency called Bitcoin tried to enter the mainstream market as a currency around the globe, it was first accepted and then regulated.
Governments are still in confusion on whether and how to regulate these currencies in order to protect the economic system and to leverage the blockchain technology to its fullest. Innovators like Elon Musk keeps on tweeting about cryptocurrency Doge coin which was started as a meme and now has a market capital of around $45 Billion.
Hidden
When the whole world is supporting and regulating cryptocurrencies, the only hope is to see cryptocurrency as a real form of usable currency for trade around the globe in the near future. Companies like Tesla has already started bitcoin as a form of transaction, but the plan didn’t last too much.
Because there was something hidden from the real-world.
Carbon Emission
Cryptocurrencies are mined, not from a hill in South Africa or from an asteroid. They’re mined from computers itself and the whole process is super complex enough to be explained in this article. In simple terms, a bitcoin is born when the miner uses his powerful computers to do complex mathematical operations in a blockchain.
The new way of explaining bitcoin mining is as easy as “A bitcoin is born when 72 Terawatts of power is burned”.
A single bitcoin transaction takes the energy that’s required to power an average American household for a month and that’s way too much energy compared to a visa transaction according to Digiconomist. In fact the whole cryptocurrency mining process takes the energy which is equivalent to annual domestic consumption of Sweden.
It’s definitely not 100% renewable energy, and that’s the problem. Also, this will add unbelievable amount of carbon emission which is one of the key thing that the whole world is trying to reduce.
Bottom Line
The technology is wonderful, the complexity and security is way beyond imagination. The world is accepting the cryptocurrency, governments are trying to regulate or in some cases banning it. The international sentiment is always positive for cryptocurrencies and it has become the peoples currency.
But the environmental problems is a real problem and it doesn’t matter how big the technology is. The enormous requirement of energy is putting the cryptocurrency world under pressure and the solution is not very close. This will require years of work, innovation and investment to make sure the mining process becomes 100% carbon neutral.
Well, let’s wait for the tweets, hope for the best.
