Causes of Legal, Economic, Environmental Issues Surrounding Cryptocurrency (Part 6)
Excessive crypto mining activities not only trigger environmental problems but also raise public health concerns. Many crypto miners ignore the release of toxic chemicals such as carbon dioxide, nitrogen oxides, sulfur dioxide into the air due to the high costs of cleaning energy compared to thermal powers. (Cho) In the short run, the unrestrained crypto-mining activities would squeeze essential electricity for the developments of other firms and households, induce dangerous air pollution, and ruin many natural resources. NYLCV, an environmental organization in New York that strives for the preservation of natural resources through political action, claims that Labor unions, businesses, and environmental groups are protesting against the harmful effects of cryptocurrency mining. The concerns around the development of underutilized power plants as crypto mining facilities have grown more forceful in recent years as conservationists challenge this practice (“The Environmental Consequences”).
Unfortunately, the existing investments in infrastructure and technological equipment prevent a smooth transition to a more eco-friendly system across the cryptocurrency network (Cho). Eventually, the high energy consumption of cryptos can provoke detrimental macro-environmental damage, such as accelerating global warming.
The launch of cryptocurrency as an innovation has required households and firms to adjust their understanding of transactions and overturned classic monetary procedures. Technology and finance often go hand in hand. During the 20th century, the development of computing brought about major changes in the operation of banks, resulting in a dramatic increase in the size and geographic distribution of banks. As part of a broader technological revolution, cryptocurrencies are driving fundamental changes in the global economy. While the currency is virtual, the rewards and risks are real. Due to the speed of cryptocurrency development, there are latencies in legal, economic, and environmental policies that would address the deficiencies presenting threats to both private and public norms. Digital transformation of commerce and the deployment of crypto assets do have tremendous potential to improve the efficiency of transactions and increase the quality of life. Policymakers must embrace the rise of the new industry, in which they all need to engage in guaranteeing that cryptocurrencies are as stable as possible, acting in unison about the lawful and valuable technological characteristics and applications of cryptos.
Adams, John. “A Greener Approach to Crypto Mining.” American Banker, 1 June 2021, www.americanbanker.com/payments/news/a-greener-approach-to-crypto-mining.
Cho, Renee. “Bitcoin’s Impacts on Climate and the Environment.” Columbia Climate School, 16 Sept. 2021, news.climate.columbia.edu/bitcoins-impacts-on-climate-and-the-environment/.
“The Environmental Consequences of Cryptocurrency Mining.” New York League of Conservation Voters, 18 Nov. 2021, nylcv.org/news/the-environmental-consequences-of-cryptocurrency-mining/.