Is Crypto Mining Bad for the Environment?

A lot of people are wondering if crypto mining is bad for the environment. The answer may surprise you!

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What is Crypto Mining?

Cryptocurrency mining is the process by which new cryptocurrency is created. Miners are rewarded with cryptocurrency for verifying and committing transactions to the blockchain. Ethereum, the second largest cryptocurrency by market capitalization, uses a proof-of-work algorithm. This means that miners competitively add blocks of transactions to the Ethereum blockchain in order to get paid.

In order for a block of transactions to be added to the blockchain, miners must solve a complex math problem. The first miner to solve the problem gets to add the block of transactions and collect their reward. The process of solving the math problem is called mining. Ethereum miners are rewarded with two Ether for each block they mine.

##Is Crypto Mining Bad for the Environment?
The answer to this question is a little complicated. First, it depends on how you define “bad.” If you mean “does crypto mining use a lot of electricity,” then yes, it does. A single Bitcoin transaction uses enough electricity to power 1.57 American homes for a day.

Ethereum is even more energy-intensive, with each transaction using enough electricity to power 3.67 homes for a day. Compare that to VISA, which processed 111.2 billion transactions in 2017 and used 732 gigawatt-hours of electricity, or enough to power about 67,500 homes for a day (source: Digiconomist).

So if you’re concerned about climate change and want to reduce your carbon footprint, then crypto mining is probably not for you.

However, it’s important to note that crypto mining is becoming more efficient all the time. TheBitcoin network hashrate has increased by 10% since January 2019 while energy consumption has remained roughly constant (source: Digiconomist). This means that each Bitcoin transaction requires less energy than it did before.

How Does Crypto Mining Work?

Crypto mining is the process of verifying and adding transactions to the public ledger (aka the blockchain). Miners are rewarded with cryptocurrency for their work, which confirms and secures the transactions.

The big problem with crypto mining is that it takes a lot of energy. In fact, cryptocurrency mining is one of the most energy-intensive activities in the world.

A single transaction can require as much energy to mine as it takes to power an entire home for a day. And when you factor in all the different cryptocurrencies that are being mined, the total energy consumption is skyrocketing.

Unfortunately, most of this energy comes from fossil fuels like coal and natural gas. This means that crypto mining is contributing to climate change.

In 2018, it was estimated that crypto mining was responsible for 0.21% of global carbon emissions – which is more than the entire country of Hungary! And as cryptocurrency becomes more popular, those emissions are only going to increase.

There are some ways to make crypto mining more environmentally friendly, like using renewable energy or developing more efficient algorithms. But until those solutions are widely adopted, crypto mining will continue to be bad for the planet.

What is the Environmental Impact of Crypto Mining?

Crypto mining has been criticized for its high energy consumption and its impact on the environment. A single Bitcoin transaction can consume as much energy as an entire household in a day, and the process of mining creates a lot of electronic waste. However, there are some ways to make crypto mining more sustainable.

Energy Consumption

A mining rig consumes a lot of energy. In fact, Ethereum mining rigs and Bitcoin mining rigs often use more electricity than a small municipality. And as the price of cryptocurrencies increase and more people want to get in on the action, this number is only going to go up.

In 2018, crypto mining is estimated to have consumed around 30 TWh of electricity. (TWh stands for terawatt-hours and is a unit of measurement for large amounts of energy.) For context, that’s more than all the electric vehicles in the world combined used that year!

To put it another way: if crypto mining were a country, it would be ranked 29th in the world for energy consumption. That’s right — it would be ahead of Argentina, the Netherlands, and even Canada.

The environmental impact of this much energy consumption is huge. Burning fossil fuels releases greenhouse gases into the atmosphere, causing climate change. And as we’ve seen with bushfires and floods in Australia recently, the effects of climate change are already being felt by people and ecosystems around the world.

So yes, crypto mining can be bad for the environment. But it doesn’t have to be.


The process of mining for cryptocurrency creates a large amount of electronic waste (eWaste). This is because the hardware used for mining needs to be constantly updated and upgraded in order to keep up with the ever-changing landscape of the cryptocurrency market. As a result, a lot of outdated and no longer needed hardware ends up in landfill sites around the world.

This eWaste is extremely harmful to the environment as it contains a number of toxic chemicals that can leach into the ground and water supplies. These chemicals can then cause serious health problems for both humans and animals. In addition, the mining process uses a lot of energy which further adds to its environmental impact.


Cryptocurrency mining—the process of generating new units of a digital currency by verifying digital transactions—requires massive amounts of energy. The same is true for otherProof-of-Work (PoW) cryptocurrencies, such as Ethereum, Litecoin, and Monero. In fact, a recent study estimates that the electricity used to mine Bitcoin this year alone will exceed the annual usage of 149 countries.

Not only does this growing demand for energy put strain on the power grid, it also comes with significant environmental costs. Most Bitcoin mining operations are powered by coal, which is one of the dirtiest forms of energy. In China, which houses some of the largest Bitcoin mining farms in the world, an estimated 80% of miners use coal to power their operations.

This heavy reliance on coal has made Bitcoin a major contributor to environmental pollution. A single Bitcoin transaction can consume as much energy as an entire American household uses in a day. And if the demand for Bitcoin continues to grow at its current rate, its annual electricity consumption will equal that of the entire world by early 2020.

The environmental impact of crypto mining is often overlooked because the industry is still relatively small. But as cryptocurrency becomes more popular and more valuable, its energy consumption will only increase. Unless we find a way to power our mines with cleaner energy sources, crypto mining could have disastrous consequences for the planet.

What Are Some Possible Solutions to the Environmental Impact of Crypto Mining?

Cryptocurrency mining has a large environmental impact because it consumes a lot of energy. Some estimates say that crypto mining could be responsible for 1% of the world’s energy use. That’s a huge carbon footprint. The good news is that there are some possible solutions to this problem.

Renewable Energy

One way to reduce the environmental impact of crypto mining is to use renewable energy sources instead of fossil fuels. Currently, most crypto mining facilities use coal-fired power plants to generate the electricity needed to power their computers. However, renewable energy sources such as solar and wind power are becoming increasingly more affordable and efficient. If more crypto mining facilities switch to using renewable energy, it could help reduce the overall carbon footprint of the industry.

Another solution is to increase the efficiency of crypto mining computers. Currently, most computers used for mining require a lot of electricity to run and generate a lot of heat as well. However, there are now specialized computer chips that have been designed specifically for crypto mining that are much more efficient. These chips can help reduce the amount of electricity needed to run a mining rig, which can in turn help reduce the environmental impact of crypto mining.

Finally, another solution is to simply use less electricity when mining for cryptocurrencies. This can be done by reducing the number of computers that are used for mining or by using smaller and more efficient computers. Additionally, some miners have started using alternative methods such as “proof of stake” which require less electricity than traditional “proof of work” methods. By reducing the amount of electricity needed to mine cryptocurrencies, we can help make crypto mining more sustainable in the long term.


One of the most promising solutions for reducing the environmental impact of crypto mining is recycling. In particular, recycling old or obsolete mining equipment can help to reduce the demand for new, energy-intensive hardware. There are a number of companies that specialize in recycling mining hardware, and some mines are even starting to do this themselves.

Another solution is to use renewable energy to power crypto mining operations. This can help to offset the carbon emissions associated with mining, and in some cases may even result in a net positive impact on the environment. A number of companies are already experimenting with this approach, and it is likely that we will see more miners moving to renewables in the future.

Finally, it is worth noting that some cryptocurrencies are specifically designed to be more environmentally friendly than others. For example, Bitcoin Gold uses a proof-of-work algorithm that is designed to be ASIC-resistant, meaning that it can be mined using commodity hardware instead of specialized mining equipment. This not only reduces the energy requirements of mining, but also means that old or obsolete hardware can still be used for mining purposes.


Overall, crypto mining isn’t great for the environment. The biggest issue is the massive amount of energy that it requires. This has led to an increase in greenhouse gas emissions and other pollutants. Additionally, the mining process can damage local ecosystems. However, there are some ways to make crypto mining more environmentally friendly, such as using renewable energy sources or developing new technologies that are less resource-intensive.

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