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The relationship between cryptocurrency and the environment is currently a major topic of debate around the world. While this revolution in the digital economy has created new possibilities, its huge electricity consumption and carbon emissions have become a cause for concern for environmentalists.

1. The main reason for the debate

Bitcoin is at the center of the environmental debate over cryptocurrency. Bitcoin uses a method called proof-of-work (pow) to verify transactions. Millions of powerful computers work day and night to mine Bitcoin. The amount of electricity the Bitcoin network currently uses annually is more than the total electricity consumption of many small countries (such as Argentina or the Netherlands). A large part of this electricity comes from fossil fuels such as coal or natural gas, which emit large amounts of greenhouse gases into the atmosphere and increase global warming.

2. E-waste or electronic waste (E-waste)

Special types of hardware (ASIC) are used for mining. To stay competitive in mining, miners have to constantly buy new and faster machines. As a result, old machines quickly become useless and generate thousands of tons of electronic waste every year.

3. The other side of the debate: solutions and prospects

Crypto supporters argue that work is underway to solve these problems and that it has a much lower environmental cost than the traditional banking system. Currently, about 52% of Bitcoin mining is done using renewable sources such as hydroelectricity, solar power, and wind power. Miners usually set up their centers where there is cheap and surplus electricity. Many mining farms are generating electricity using methane gas, a byproduct of oil mining (which is usually burned). This helps reduce methane emissions into the atmosphere. In 2022, the world's second largest cryptocurrency, Ethereum, switched its system from PoW to PoS. As a result, Ethereum's electricity consumption has decreased by 99.95%, which is a huge achievement for protecting the environment.

4. Green Crypto

Many new cryptocurrencies are now being created with the environment in mind, which are energy efficient. A Solana transaction consumes less electricity than two Google searches. Cardano uses full proof-of-stake, which is very environmentally friendly. Chia works using hard drive storage, so it does not require processing power.

5. Comparison

Many think it is wrong to blame crypto alone. The environmental costs of traditional banking systems (branch management, ATM operation, card production, and employee travel) are also huge. However, since crypto is a new technology, its transparency and efficiency are more questioned.

Conclusion

The environmental debate of cryptocurrency is basically part of the evolution of technology. As we approach 2026, many countries are imposing regulations on mining, keeping in mind the damage to the environment, and the industry is rapidly moving towards 'green energy'. Today's discussion concludes here. I hope you've found it interesting. Please share your thoughts on today's topic. Prayers for everyone. May everyone be well. Amen.

Me behind the camera & keyboard

I’ve always loved sharing my passions with you — from crypto and movie reviews to photography, storytelling, and blogging. Now, continuing that creative journey, I’ve stepped into a brand-new world — Gaming ! 🎮 | 🎥 On my YouTube channel Bokhtiar The Survivor — I’m consistently working to bring you the raw thrill of my gaming experiences — the emotions, the excitement, and those unforgettable moments that make every game feel alive.