The first cryptocurrency Bitcoin which was created thirteen years back witnessed a lot of criticisms based on its negative impacts on the environment. With this backdrop in mind, the second cryptocurrency Ethereum (ETH) was created to be more eco-friendly than Bitcoin. Notwithstanding, both today still consume a lot of energy and electricity when it comes to mining.
The fact is that mining not only consumes a lot of electricity, but also harms the environment in several ways. Which we have discussed in this work. The emissions from the mining processes have further increased global warming making it difficult to maintain a green environment today. Are these enough reasons to condemn cryptocurrency trading today? Are there an alternative means of reducing the amount of energy consumed in Crypto mining today? Is cryptocurrency trading more eco-friendly than the traditional banking system obtainable today? This work has therefore examined the negative impacts of Crypto trading on the environment today.
What is crypto?
Crypto is a blockchain-based technology that uses a consensus mechanism to validate transactions. The fact that it does not require a centralized third party for verifying transactions has made it a popular means of making online payments today.
Why was crypto created?
Crypto was created to serve as a decentralized means of making payments. People sought to move away from the total dependency on the centralized banking systems, hence, an anonymous personality was quick to invent the first crypto known as Bitcoin to serve this purpose.
Does crypto have a negative impact on the environment?
Crypto trading is known to have a lot of negative impacts on the environment today. The major reason why many countries have banned crypto mining in their countries is due to the perceived harmful effects of crypto mining on the environment. Crypto trading harms the environment in several different ways. We have discussed them below.
- Air pollution through emissions: Mining new cryptos using large machines, gives off Carbon dioxide as their end products. These end products of mining as we know are not healthy for humans today.
- Noise pollution: Crypto Mining can cause noise pollution in several ways. First is from the sources of electricity used in powering the device especially when it is not a natural source of electricity put in place. Also, the computers used in mining require steady cooling, hence the large industrial fans are put on which is also a noise pollutant.
- Increasing global warming: Crypto mining often involves burning large numbers of fossils to generate electricity. This increases global warming making the environment unfit for human habitation.
- Depletion of resources: Crypto mining depletes large numbers of resources including human resources and energy. This increases human dependency on green life for more energy and survival.
- Land Pollutions: Often the tools used in mining could constitute land pollutants when not properly disposed of by miners.
Can these harmful effects of crypto on the environment be redeemed today?
Many advocates of crypto trading today have pushed for alternative means by which these harmful effects from crypto trading could be redeemed. This class believes that the best way to reduce the harmful effects of crypto trading today is to choose only natural energy sources such as solar energy for mining crypto.
Is crypto better than the traditional banking system in terms of energy consumption?
Important comparisons made in the past between crypto and the traditional banking system showed that the latter consumed more energy. Here crypto was found to be more energy-saving compared to the traditional banking system. Consequently, crypto fans tend to endorse crypto above the banking systems today.