We can not deny the fact that cryptocurrency provides us with a tremendous amount of opportunities in the field of investment and growing profits. From economy to other aspects of growth for a nation and even in a crisis like a war situation it affects every aspect. But with the growing popularity, its dangerous effects also haunt many experts.
Now it is mainstream for global financial needs by giving cheaper alternatives for the banking system, easy transfer of money, and incredible security which is possible with the help of blockchain technology, cross-border payment facilities and so on which only be possible due to cryptocurrency.
WHY IT’S AN GROWING CONCERN FOR EXPERTS
For the newer investors, crypto may be a great opportunity to showcase their talent and increase their profit but it is not the same for experts. As many experts believe that the growing hype of cryptocurrency it started affecting the environment so drastically.
In cryptocurrency, we use blockchain technology for safer investment but it takes lots of energy in the form of electricity which can not be negligible as per data bitcoin’s annual electricity consumption is triple times that of consumption of New Zealand which is quite an alarming situation for the crypto world.
HOW MINING IS RESPONSIBLE FOR ENVIRONMENTAL DAMAGE?
Cryptocurrency works with a complete system that has different steps in it but most important blockchain technology is a key to safer and secure investment. Blockchain technology is used to record transactions and verify them it’s a type of ledger where all information is been recorded.
Blockchain is like a security provider for cryptocurrency but it is not easy as it consumes a huge amount of electricity which is the main concern. Blockchain use complex processing which requires more power. Verifying transactions or whether mining takes lots of energy is a growing concern for most countries.
NEGATIVE IMPACTS ON THE ENVIRONMENT
With the increase in the adaption of cryptocurrency, its negative effects also caught the eyes of experts. From their point of view, it’s an alarming situation that we should not ignore. We have seen that climate changes drastically, an increase in the death of wildlife due to increased heat, a disease for people also growing, there is the subsequent amount of loss in agriculture and also rise in coastal areas, etc.
These all are alarming issues that should be given importance. A report shows that bitcoin generates an estimated 22 to 22.9 tons of carbon dioxide emission in a huge year.
WE NEED TO SHIFT ECO-FRIENDLY CRYPTOCURRENCY
After studying its negative effects on the environment we should shift our focus on making crypto more eco-friendly which is a more sustainable way in the long term. Tesla is being out loud about its rejection of bitcoin as a payment method. As it has been seen that many other coins are more eco-friendly as compared to bitcoin like Cardano which is created by the co-founder of Ethereum as it makes 1000 transactions per sec as compared to bitcoin. We can opt for so many different eco-friendly options which will not hamper our environment.
We need cryptocurrency as it is the new generation for financial sectors. More and more people are attracted to the crypto world as it provides a tremendous amount of profit and growth to the economy. Whether you need to cope with poverty or you need to increase your economy we need this new tool.
But by taking several actions we can manage the environmental problems which are caused by crypto. We can not ignore the fact that crypto is not only beneficial in the financial sector but it is broader than that. We also can not ignore our environmental issues which must be discussed.