Bitcoin Boom Could Cause Environmental Disaster

The Bitcoin boom has led to the rise of giant mining machines that have a negative impact on the environment.

Inside the bitcoin "mining" factory worth tens of millions of dollars.

In recent days, Bitcoin has attracted the attention of the world as its value has skyrocketed. From around $1,000 per coin at the beginning of the year, its current price is approximately $15,000, and at one point it even reached over $20,000. The rapid increase in price has many people worried about a crisis when the Bitcoin "bubble" "bursts" similar to the dot-com bubble nearly two decades ago.

However, according to CNN, there is another concern about its impact on the environment. Unlike conventional currencies that are tied to banks, produced, managed and circulated by banks, virtual currencies are created from algorithms and it needs machines to do that.

According to Digiconomist’s Bitcoin Energy Consumption Index, Bitcoin uses about 32 terawatts of electricity per year, enough to power 3 million homes in the U.S. Keep in mind that processing billions of Visa transactions each year only requires the same amount of electricity as 50,000 homes.

"As more Bitcoins are mined, the algorithm that computers solve to 'mine' them gets harder, which means more energy is needed to power them," said Eric Holthaus, a meteorologist.

He believes that if Bitcoin mining continues as it is today, the amount of electricity used by miners could be enough to power the entire United States by 2019. And just six months later, many people will be shocked to learn that the amount of electricity used by Bitcoin miners could be equivalent to the world's energy consumption.

Environmental disasters could occur due to the energy source for Bitcoin "mining" needs.

Higher electricity consumption means increased power plants, new power plants, exploitation and use of natural resources, and environmental destruction, which are all things that Holthaus and environmentalists are concerned about. The consequences in the near future will certainly be huge if there are no new Bitcoin mining solutions or new, more environmentally friendly electricity production methods.

In fact, according to the University of Cambridge, large-scale Bitcoin mining plants are and will soon be concentrated in China, in remote areas due to low electricity and land prices. In particular, Sichuan is a promising land because of its huge coal reserves. Previously, it was the focus of inefficient thermal power plants, but it will be the place where the "largest ever" Bitcoin mining plant with a closed process, including electricity production, will appear.

Bitcoin miners also have their own arguments, in which they argue that the impact of the virtual currency "mining" system on the environment is very small, not as much as the exploitation of natural resources, such as oil and gas. In addition, renewable, environmentally friendly energy sources are also proposed, such as the HydroMiner system in Vienna.

Still, that doesn't stop environmental experts from being pessimistic about the future. "We need to do something now!" said John Quiggin, professor of economics at the University of Queensland.

According to VNE