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Its popularity is growing, but bitcoin ‘mining’ increases pollution

Although many believe that cryptocurrencies have numerous advantages and are becoming increasingly popular, at a time when efforts to protect the environment are intensifying and attempts are being made to mitigate the effects of climate change, a study has been conducted showing that so-called 'bitcoin mining' causes significant pollution.

According to BBC, 'bitcoin mining' produces as much electronic waste annually as the Netherlands generates in a year from disposing of laptops, phones, and other devices. More precisely, according to a study conducted by Alex de Vries and Christian Stoll, this amounts to a total of 30,700 tons of waste per year, and per transaction, it is about 272 g.

For easier understanding, divided by the average number of bitcoin transactions, nearly two transactions create as much waste as a disposed iPad, Quartz reports.

Additionally, researchers estimate that the devices used for 'mining' have a shorter lifespan due to intensive operation, lasting only 1.3 years. Therefore, it is not surprising that electronic waste is the fastest-growing global waste stream, and between 2014 and 2019, its volume increased by 21 percent. Just under one-fifth of total waste is recycled, and many metals and chemicals contained in the waste are harmful to human health, Quartz states.

Additional amounts of CO2

Moreover, it is known that 'mining' cryptocurrencies generates additional amounts of carbon dioxide. As reported by Bug.hr, it produces over 77 megatons of CO2 annually that ends up in the atmosphere, and it consumes a large amount of electricity due to the operation of computers that unlock new coins day and night.

According to BBC, the amount of electricity consumed for 'mining' is greater than the total energy consumed in the Philippines.

Additional chip shortage

Numerous industries have been struggling with a global chip shortage for some time, and now 'mining' further creates problems as it requires computers with more efficient processors, which has led to a shift to highly specialized chips known as Application-specific Integrated Circuits (ASIC). The entire situation could lead to further disruption in the supply chain.

Experts believe that one solution to the overall problem of electronic waste would be to change the way bitcoin transactions are conducted, i.e., that a system with fewer computers is needed for them.

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