For the last 6+ months, cryptocurrencies have been the news over and over again. Ranging from the highs of Bitcoin at the end of last year through hacking of cryptocurrencies during the last week; cryptocurrency news has been everywhere. But with all the buzz about cryptocurrencies, the elephant in the room seems to be completely ignored: the huge waste of energy.
During the last several decades, there have been growing concerns about climate change, global warming, green technologies, etc. Al Gore insisted that we lower our green house gasses (ironically while traveling around the world in a private jet creating more green house gasses in a year than many of us will in our lifetime). Car companies want us to use electric cars to lesson our usage of fossil fuels. Wind and solar farms are showing up all over the place to decrease the nation’s carbon footprint. We’re asked to heat our houses to 66 at night and cool them to 75 or 80 in the summer. Turn lights off when not in use, ride a bike to work, shut off your computer when not in use, don’t idle your car in the winter to warm it up, on and on the list goes. But that’s not enough – the environmentalists say – we need to stop using all the earth’s natural resources on cell phone components, batteries, etc. Use rechargeable batteries, recycle your cell phones, don’t throw computers in the trash because they contain hazardous parts.
Then, cryptocurrency hits the market. No longer do we care about energy consumption. Cryptocurrency is intentionally designed to use as much power as possible – increase the difficulty of a block and the power consumption goes up. Mining generates huge amounts of heat, and then air handling systems need to be installed to keep machines cool. Cryptocurrency is both directly and indirectly causing global warming! To make matters worse, miners spend huge sums of money buying special chips (whether video chips or specialized ASIC chips) which require more mining to retrieve the necessary minerals. From an environmental perspective, cryptocurrency may be one of the biggest disasters of the 21st century. Yet, nobody wants to talk about it. A few years ago, it was suggested that I get rid of my Dodge Ram truck because it used too much gas. Now, the world is on fire for crypto mining.
Let me be clear, I think blockchain is an amazing technology. The potential is mind boggling. However, if it continues to grow like it currently is, how will we handle the energy requirements? How will we reduce green house gasses? How will we achieve any goals that involve using less energy when cryptocurrency is based on wasting energy? I think this is a problem the cryptocurrency community needs to resolve. The technology is great, but I doubt the global community is willing to sell out the entire planet for a few bitcoin.
I’d really love to hear thoughts from the blockchain community on how this can be resolved!