The Price of Money
Bitcoin mania has reached fever pitch as its value ebbs and flows with the debate over its future in global markets.
But for all the headlines, Bitcoin and other cryptocurrencies are bad news for the environment, the New York Times reported.
Creating just one Bitcoin requires tremendous amounts of computing power – and as much electricity as the average American household uses in two years, according to figures from Morgan Stanley.
All of the computers connected to the Bitcoin network consume as much power each day as some medium-sized countries – and Bitcoin is just one of many cryptocurrencies.
It’s due to a complex algorithm needed to create cryptocurrencies, the answer to which requires lots of guesswork by computers and, consequently, lots of electricity.
That’s why cryptocurrency server farms have popped up near geothermal and hydroelectric power plants around the globe, CNBC reported.
Some say the environmental footprint is worth it to create a new financial system free from the influence of traditional financial players, but others are calling for green solutions.
“I would personally feel very unhappy if my main contribution to the world was adding Cyprus’s worth of electricity consumption to global warming,” Vitalik Buterin, the creator of Bitcoin competitor Ethereum, told the New York Times.
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