As humans evolve and culture changes, one of the outcomes of these natural processes is that with humanity, so does the form of currency change and evolve. Over time humans have gone from trading rare metals, or even sea shells, to various forms of mass-produced currency like the dollar. Now, with the rising tide of Web3 on the horizon, many think cryptocurrency will be the next stage in humanity’s evolution of currency.
For some, this is more than simple forecasting. It’s not a question of if cryptocurrency – but rather, when. For others, cryptocurrency has potential but will never take precedence as a primary form of currency worldwide. While it serves a growing market, it will forever be something that only enthusiasts enjoy.
No matter what side of the line you fall on regarding cryptocurrency and its viability, the truth remains that it is a genuine player in modern-day global economics. One of cryptocurrency’s most significant weaknesses is its massive lack of education. While the concepts and realities of Web3 are becoming more commonplace and knowledge of cryptocurrency is growing, it’s still not uncommon for the average consumer to be confused about what exactly cryptocurrency is.
Over recent years, several influential celebrities embraced cryptocurrency and other products of the Web3 revolution, namely NFTs, which sparked a massive interest in pop culture. As the world has become more and more aware and comfortable with the concepts and reality of cryptocurrency, another concern has risen to the surface that needs to be addressed – and that is sustainability.
While certain companies take sustainability very seriously in the cryptocurrency space, such as Gryphon Digital Mining and others, one of the most prevalent threats to sustainability is awareness and education.
If you have been interested in discovering more about cryptocurrency, bitcoin mining, and whether it’s environmentally sustainable for the planet – this is a great place to begin!
Why The Concern?
To understand if bitcoin, the oldest form of cryptocurrency on the market, mining is environmentally sustainable, you must first understand the concern. Bitcoin mining is a cryptocurrency that relies on a hefty if not unprecedented, amount of computational power to exist. Fiat currency, a form of currency that is not only backed by centralized governments but tracked by centralized governments, represents the currency most people are familiar with. Cryptocurrency is unique because it decentralizes currency to a public, electronic ledger known as the blockchain.
The blockchain is a digital public ledger that decentralizes currency, brings transparency and sustainability to the global market – and consequently relies on a lot of electric power. Creating this blockchain takes computational power, and this kind of computational power is known as mining. Now, this takes more than a small computer. Building the blockchain, it takes a massive amount of computation and energy – which is why bitcoin mining is considered to be an environmentally unstable practice due to carbon emissions.
To give an idea of how much power it takes to fuel bitcoin mining, in August of 2022, a report was published that claimed crypto-asset-related energy consumption had reached between 120 and 240 billion kilowatt-hours per year. To put that in perspective, that is enough energy to support countries like Argentina or Australia.
Due to the carbon emissions it takes to create this kind of electricity. Many experts surmise cryptocurrency could spell environmental disaster unless green bitcoin mining methods are developed. While the argument does stand that cryptocurrency has nowhere near the carbon footprint that fiat currency has – which requires material resources and the industry to transform those resources – the fact remains that one is not replacing the other quite yet. \\
Yes, in the long haul, cryptocurrency may require less carbon footprint to create than a traditional banking system that relies on brick-and-mortar locations, plants, and minerals to be harvested and mined to be turned into physical money; however, the rise of cryptocurrency energy demands as they exist alongside traditional energy demands is something that global leaders in all sects are taking seriously.
Conclusion: Can it Be Sustainable?
The world of crypto is still fresh, and the good news is that its environmental sustainability is already being taken seriously. By focusing on creative solutions that create carbon-neutral crypto mining opportunities, leaders in this industry can find ways of creating sustainability for the future of cryptocurrency in general and the planet itself.
