Introduction & Background
Last updated
Last updated
The extraordinary rise in cryptocurrency prices over the previous decade has prompted huge investments in the cryptocurrency sector. Undeniably, digital currencies have won the faith of the world's top investors. Yet, this exciting market has a hidden dark side. Proof of Work blockchains mechanism, mining cryptocurrencies using fossil fuels and E-waste can have major environmental impacts on earth’s climate, water, and land according to researches by scientists.
How energy-inefficient is the proof of work mechanism, and how large is its carbon footprint? In PoW computational effort is used to align the network with the current state of the blockchain. General wealth inequality and spatial inequality, combined with economic incentives can result in both physical and virtual clusters of mining devices. In order to mine, miners must experimented with various hardware in order to increase computation power. Initially, Central processing units were used, before graphics processing units replaced them for a short period of time. Next, Field-programmable gate arrays were customized to support mining before the application-specific integrated. Research consistently assesses that the process of mining is associated with extensive energy consumption, carbon emissions, resources and electronic waste.
Many blockchain networks use the proof of work mechanism. It’s difficult to get reliable data from every proof of work network, so the best estimates of climate impact have focused on Bitcoin, the largest cryptocurrency currently employing a proof of work mechanism.
In PoW computational effort is used to align the network with the current state of the blockchain. General wealth inequality and spatial inequality, combined with economic incentives can result in both physical and virtual clusters of mining devices. In order to mine, miners must experimented with various hardware in order to increase computation power. Initially, Central processing units were used, before graphics processing units replaced them for a short period of time. Next, Field-programmable gate arrays were customized to support mining before the application-specific integrated.
Research consistently assesses that the process of mining is associated with extensive energy consumption, carbon emissions, resources and electronic waste. Bitcoin mining produces about 62 metric tons of carbon dioxide emissions each year. In addition, it consumes about 112 terawatt hours of electricity and creates about 64.4 kilotons of electric waste annually.
Global mining activities resulted substantial carbon footprint, significant water and land footprints. Mining activities from Bitcoin alone has emitted over 255.89 metric tons of CO2 during the 2020–2023 period. The greenhouse gas emissions of Bitcoin mining could be sufficient to push global warming beyond the Paris Agreement's goal of holding anthropogenic climate warming below 3 Celsius.
Which means Bitcoin mining nations are together responsible for 92–94% of the global carbon, water, and land footprint of Bitcoin. To offset the CO2 emissions of Bitcoin mining, 4.9 billion trees must be planted, taking up an area equivalent to the size of the Netherlands, Switzerland, or Denmark, or 9% of the Amazon rainforest.
Enormous growth of mining activities also leads to e-waste problem. Miners cycle through a growing amount of short-lived hardware that could exacerbate the growth in global electronic waste. E-waste represents a growing threat to our environment, from toxic chemicals and heavy metals leaching into soils, to air and water pollutions caused by improper recycling. Mining e-waste adds up to 64.4 metric kilotons annually, while global e-waste is expected to grow by 70%.
WHAT IF all this extremely dangerous impact for environment continuous?
WHAT IF its wreck continuous until rotting our Mother Earth from the inside?
HOW MANY lives and lands could be loss due the climate change and lead to disasters?
WHAT IF THERE’S NO MORE EARTH??
