Experts raise concerns over environmental impacts of cryptocurrency mining - - Financial Market Media No. 1 in the World Experts raise concerns over environmental impacts of cryptocurrency mining Experts raise concerns over environmental impacts of cryptocurrency mining

March 18, 2021

Experts raise concerns over environmental impacts of cryptocurrency mining

 According to the University of Cambridge, bitcoin's annual electricity consumption exceeds that of such countries as Argentina or Chile. This problem has long been under discussion not only by scientists but also by various philanthropists and environmentalists. Most think that the digital currency has no real value. Bitcoin sceptics believe that this is just a piece of useless code that does not bring any benefit but uses a huge amount of electricity which, in turn, is not always produced with the help of renewable and environmentally friendly sources. It is reported that most of the energy consumed by miners is generated in power plants which produce electricity by burning coal. Thus, tons of CO2 are emitted into the atmosphere. However, several major miners have recently commented on these concerns. In their opinion, the problem is actually not as bad as it seems. Miners are gradually switching to renewable electricity sources. However, there is no official data that could confirm this statement. In addition, it is very difficult to imagine that mining farms are located exactly where there are green energy sources, quite the opposite. Many fans of bitcoin and other cryptocurrencies have already accused the scientists of disliking bitcoin. "People that are against crypto think that any energy consumption from bitcoin is wasteful," Director of Business Development at Kraken Dan Held said. Held believes that it is extremely difficult to calculate the real consumption of electricity by miners. Besides, he notes that the electricity costs of bitcoin mining and transactions are similar to the electricity costs of the traditional banking system functioning. However, in this case, all the costs of electricity in the banking sector should be taken into account, from a kettle to air conditioners. Other cryptocurrency experts also pay attention to the fact that miners seek low cost electricity and mainly its surplus which would go nowhere. Everyone admits that most of the mining farms are located in China, where the vast majority of the electricity is produced by burning coal. Thus, the situation depends on the degree of involvement of a particular country in the development of green energy. For example, mining companies in Norway, Sweden, or Canada use only renewable energy sources. Northern Data CEO Arush Tillenathan believes that "dirty energy" mining is unsustainable. He expects governments to take tough action against coal-fired power plants in the future.