Washington (GGM) Analysis | April 17, 2022 by Attorney Michael Wells
Napoleon Bonaparte once said, “Let China sleep, for when she wakes, she will shake the world.” China poses military, economic, social, and environmental threats to the entire world. Yet, with the myriad threats it poses, one threat it has awakened, Bitcoin, threatens to shake — and possibly destroy — the environment. Although Bitcoin requires the most advanced computers performing dizzying calculations, it needs unfathomable amounts of energy, and that energy comes primarily from fossil fuels in China, namely coal.
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Heart of the matter. For years Bitcoin appeared to be a passing fad and something many people were only vaguely aware of, but it is here to stay as is other cryptocurrency. And most of it is constructed or “mined” in China, which requires tons of hardware that needs energy. In China, that energy is supplied by coal based power, according to a February 5, 2021 CNBC article. Bitcoin is the 9th most valuable asset in the world, and it requires more energy than New Zealand. In fact, if Bitcoin were a country, it would rank 31st in the world for energy consumption, according to a March 19, 2021 Independent article. Although Bitcoin has been around since 2009, its energy use came to the forefront in 2017. But, since that time, its energy use has quadrupled.
Proponents of Bitcoin, as cited in the Independent article, argue Bitcoin is “moving” towards “renewable energy,” and it will one day be a leader in renewable energy. Little evidence exists of these assertions. What is apparent, however, is the cryptocurrency market, led by Bitcoin is growing. As a currency it is attractive because its so-called block chain technology makes it unique, tough to steal, scarce, and easy to spend. The downside of that is the creation of cryptocurrency or “mining” requires computing power and vast energy sources. That computing power mainly comes from China, which relies heavily on coal however advanced their society may be. And that is a huge problem for the environment no matter how proponents want to spin it.
How this impacts you personally. If you are worried about food shortages, pandemics, cities under water, droughts, or most any other calamity flowing from climate change, then the growth of Bitcoin and other cryptocurrencies should worry you because they rely so heavily on fossil fuels, namely coal. Until Bitcoin derives its energy from renewable energy sources, it will continue to be an environmental threat, a threat that grows larger as the demand for Bitcoin increases.
What you can do. The best way to lessen the Bitcoin environmental threat is not to buy stock in the company. Another way is not to use the currency or be involved in “mining” it. In addition, tell people it is a threat because many people are probably unaware Bitcoin poses such a threat.
- Learn as much as possible about Bitcoin and other cryptocurrencies;
- Do not purchase Bitcoin stock shares or fractions of shares;
- Learn more about renewable energy; and
- Contact your local, state, and federal officials and let them know how you feel about Bitcoin and other cryptocurrencies.
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