Why is Cryptocurrency So Bad for the Environment? Cryptocurrencies like Bitcoin and Dogecoin used to seem like a sci-fi fantasy. But in 2021, amidst a calamitous global pandemic, the cryptocurrency market seems more user-friendly - and volatile - than ever before.
By Remy Millisky
really add up - with detrimental effects - even as worldwide, national leaders are attempting to make choices that are better for the health of planet Earth, our only home. Bitcoin mining and trading are responsible for almost 37 million metric tons of carbon emissions every year, a carbon footprint comparable to the yearly carbon footprint of the entire country of New Zealand. It consumes almost the same amount of power each year as Pakistan, and has a comparable carbon footprint to Libya.
Early investors made millions on Dogecoin, a goofy coin created in 2013 as a joke to poke fun at cryptocurrencies. But in 2021, investors watched in shock as the price of a Dogecoin rose from a fraction of a penny, making a meteoric rise to 73 cents per coin. How can an online currency be wreaking real-life havoc? It starts with “mining” crypto coins from a computer. It’s timeconsuming and challenging work, but it can be done by a single person on a laptop anywhere in the world. Miners have to register blocks of transactions, creating a blockchain by solving a series of equations. The environmental damage comes from the astronomical amount of energy needed to power these computers as they mine bitcoins. Mining even one Bitcoin, for example, uses as much energy as the average American family uses in three weeks. And this can
What if you were just to buy one single Bitcoin? The value of one Bitcoin changes daily, much like stocks, but in 2021 the value has ranged between $17,000 to $64,000 for one Bitcoin. Mining one coin uses a startling amount of energy, roughly the same amount of power consumption as a US household over more than 46 days. You could watch Youtube for over 12 years straight with that amount of energy. And the more Bitcoins that are bought and sold, the more difficult and timeconsuming mining becomes, driving up the price and desirability. 35
