How is Crypto Mining Harmful? Cryptocurrency and its related news have become exciting stuff around the world. Every second, new curious users come and haunt the cryptocurrency world, and among them, some turn into investors & miners. It is now a wonder that investors and miners are being engaged with the cryptocurrency realm every now & then, and making it more famous across every country.
One of the fantastic and extremely valuable things a user shall know is crypto mining. In brief, Crypto mining is the process of generating new coins and verifying new transactions. Though crypto currency seems exciting, it has other disadvantages for the world and our environment.
If you have slipped over this page, it is, ofcourse, obvious that you wish to know everything about how is Crypto Mining Harmful. Before exploring the disadvantage of crypto mining, let’s get to know some basics of Crypto Mining and how it works.
What is Crypto Mining?
The very basic understanding of crypto mining refers to the process of virtually creating new coins and digitally validating new transactions on the crypto network. When the users solve complex cryptographic hash puzzles to validate any new transactions & feed them to the blockchains, the users on the network are rewarded with new crypto coins.
The outer appearance of the crypto mining process may seem simple and a cakewalk. But when you explore it deep inside, you come to know the intricacies of crypto mining methods and techniques.
Talking about the same, the crypto mining process requires a complex and advanced computer, hardware, and other relevant technology. In fact, solving complicated puzzles within the time frame mandates the user/company to have advanced computer & other required technology.
More importantly, it uses massive, decentralized networks of computers that operate all over the world to protect and validate blockchains (the electronic ledgers that record bitcoin transactions). The process of mining crypto currency and rewarding users follows the virtuous circle- miners verify and secure blockchains, and they award computers on the global network with digital crypto coins. Then the coins pay some promising amount.
Though many people buy & sell cryptocurrency in anticipation of making huge profits, many others find it hazardous for our beautiful world and environment. Before we come to know how is crypto mining harmful or hazardous?, we should know why crypto mining requires Energy:
Why Crypto Mining Requires Energy?
Crypto mining is not like digging something from the ground, but it is a digital process of creating coins and maintaining and securing blockchains on global computer networks. Therefore, the method & technique require vast & advanced-level machines set up for managing the crypto mining smoothly 24/7.
The way it validates the transaction process with several advanced computer technologies, including mining rigs, it becomes evident that this enormous setup will require huge electric Energy. However, the consumption of Energy depends on the mining firms: the large mining companies will obviously consume more electric Energy than the small cryptocurrency mining firms. Essentially, the consumption of electric Energy maintains the security of cryptocurrency blockchains that use proof-of-work consensus.
How is Crypto Mining Harmful?
Crypto currency mining, specifically Bitcoin and Ethereum mining, is the most worrying for the world. It is so because verifying any transaction of Bitcoin & Ethereum consumes a huge amount of electric Energy. According to Cambridge Bitcoin Electricity Consumption Index, the amount of electricity used by bitcoin mining each year could boil enough water to make all the cups of tea produced in the UK for 30 years.
However, there are several other cryptocurrency mining in the world that are worrisome for the health of the environment, but significantly less than the Bitcoin mining process. Essentially, those crypto currencies have been ranked below in the energy consumption list because they are less popular & have low transactions around the world.
However, it anyway harms the environment. These cryptocurrency mining processes are harmful to the environment because they consume significant electricity, which is responsible for producing an enormous amount of carbon footprints. Basically, a significant portion of electricity is being generated by the fossil fuels like coal in almost every country, which is obviously daunting to the environment’s health.
Moreover, the waste of application and technology used in crypto mining do also harm the environment. Due to the rapid deterioration of mining equipment, cryptocurrency mining also produces a substantial amount of electronic trash. This is particularly valid for Application-Specific Integrated Circuit (ASIC) miners, which are specialized devices made for mining the most widely used cryptocurrencies. The Bitcoin network, according to Digiconomist, produces over 38 thousand tons of electronic garbage per year.
Is there any Green Crypto?
It is not possible to have green cryptos until the crypto mining process changes into the less or no-energy consumption consensus mechanism. The mining of the most popular crypto currencies like Bitcoin is currently based on a proof-of-work consensus mechanism for processing transactions & generating new blocks on global computer networks.
The proof-of-work is an energy-intensive cryptocurrency consensus mechanism that requires highly advanced computational technology for mining. That’s the reason the process of mining Bitcoin consumes a large amount of Energy.
However, there are alternative, eco-friendly cryptocurrencies that inflict less damage on the planet. These might reduce worries about cryptocurrencies and the environment. Below mentioned are some of the green cryptos around the world.
| BitGreen | Solarcoin |
| Nano | Chia |
| Cardano | Iota |
(a) Bitgreen: This cryptocurrency is an alternative to Bitcoin (energy-intensive). Bitgreen has been launched with a commitment to reducing the environmental impact of transactions.
(b) Nano:
(c) IOTA: IOTA uses the “Tangle,” an alternative technology that does not require miners. It is maintained by smaller devices and, as such, has lower energy requirements.
(d) Solarcoin:
(e) Chia: The mining process of Chia is quite different from Bitcoin mining. It has been considered one of the sustainable crypto coins. The approach of Chia farming is Proof of space rather than the Energy intensive proof-of-work cryptocurrency consensus mechanism.
(f) Cardano: Cardano is one of the eco-friendly cryptocurrencies, quietly different from Bitcoin. Essentially, Cardono uses the method of a proof-of-stake system for validating and securing the blockchains on the global computer network. This saves a massive amount of Energy because users must buy tokens to access the network.
FAQs on How is Crypto Mining Harmful
Q. What are the Dangers of crypto mining?
Ans- The dangers that we are going to encounter from crypto mining include the following: (a) With crypto mining, a large number of carbon footprints are produced, which worsens the environment (b) with crypto mining, tons of obsolete computational machines are being discharged, which anyway harming the environment.
Q. How Polluting is Crypto mining?
Ans- Crypto mining is a process of securing blockchains and generating new coins, and this process is completely based on the use of many advanced computer devices and related technologies. In essence, this whole method needs a significant amount of electric Energy, and which is majorly produced by fossil fuels. Thus, the process is responsible for creating carbon footprints and deteriorating the environment. It clearly makes us aware that how is Crypto mining Harmful.
Q. How Much Does Crypto Mining Hurt the Environment?
Ans- Crypto mining can hurt the environment to a large extent if the mining process continues to be based on Proof-of-work. However, the experts are working on alternative or eco-friendly techniques for mining cryptocurrency. Currently, Proof-of-stake, the alternative of Proof-of-work for validating transactions and minting new crypto coins, is being used in the market. Experts, however, on several other crypto currency consensus mechanisms, including Proof of history, Proof of burn, Proof-of-elapsed time, Proof of capacity, etc., are trying to develop.
Q. Is crypto eco Friendly?
Ans- Yes! There are several cryptos in the market that are eco-friendly and sustainable for the environment. However, a myriad of cryptocurrencies consumes enormous electric Energy to validate the transactions and mint new coins, which eventually emit lots of carbon, generate waste, and harm the environment.
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