WHY IS CRYPTOCURRENCY BAD FOR THE ENVIRONMENT ARTICLE

Why is Cryptocurrency So Bad for the Environment? By Remy Millisky

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.

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 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.

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.

Currently, about 70% of annual crypto mining occurs in China, with about 7% in the United States. Cryptocurrencies are almost entirely unregulated as of May 2021, making it the wild west of currency exchange. The 1350% rise of Bitcoin and Dogecoin this year can be partially attributed to Elon Musk, the billionaire owner of Tesla and king of Twitter memes. In early 2021, he added “#Bitcoin” to his Twitter bio, causing a 25% price spike. He has tweeted support for Dogecoin. After purchasing $1.5 billion in Bitcoin, Tesla announced it would accept BitCoin as a payment option, causing another uptick in crypto sales. Musk and Tesla quickly received a backlash about the environmental impacts. According to marketwatch.com, Musk said, “Cryptocurrency is a good idea on many levels and we believe it has a promising future, but this cannot come at great cost to the environment.” But as of June 2021, Tesla is still accepting Bitcoin payment.

Musk isn’t the only celebrity to find themself unsure of how to proceed with cryptocurrency in the modern age. Andrew Yang, who is running for mayor of New York City, has said that he would like to turn the city into a cryptocurrency mining hub. Game of Thrones actor Maisie Williams purchased Bitcoin in November 2020, asking her Twitter followers for advice in a tweet that gained over 900,000 mixed responses. Rapper and fashion designer Kanye West showed his support for Bitcoin, saying that cryptocurrencies “are the true liberation of America.” With the new popularity crypto has gained, the upticks in sales are sure to continue.

What can be done about the environmental impacts, such as the 35 million tons of carbon dioxide emitted every year? To start, not all cryptocurrencies are acquired through mining. For example, EOS and Cardano are proof-of-stake blockchain platforms, allowing users to avoid mining and complete transactions using significantly less amounts of energy. And some petroleum companies have been exploring ways to power mining rigs using emissions from gas flares that would otherwise be wasted energy.

Spreading awareness of the impact of cryptocurrencies, and resisting the temptation to purchase these futuristic coins, are a few ways to begin. But as millions of tons of carbon dioxide poison the atmosphere with each passing year, governments may find themselves thinking long and hard about how to finally regulate the currencies.