The Environmental Effects of Cryptocurrency Mining in the World

Abstract

Cryptocurrency is called as a digital or virtual currency, is included in the financial system independently of the monopoly of legal authorities and is difficult to control. Since the market value and transaction volume of cryptocurrencies is very large, it brings significant change on a global scale. Cryptocurrencies have disadvantages as well as advantages. Some of environmental impacts triggered by the cryptocurrency mining can be expressed as the high electricity consumption, the increased carbon footprint and the generation of the electronic waste. In this study, the structures of the cryptocurrency and block-chain technology are analyzed, and the amount of energy consumed by the cryptocurrency mining and its environmental dimensions (environmental and social consequences) are examined. Lastly, activities to prevent the environmental impacts of mining activities are evaluated.