Bitcoin, the world’s most famous cryptocurrency, is extremely notorious for negatively impacting the environment. The carbon print that is being produced by bitcoin can be attributed to its mining process. Mining refers to the process of obtaining Bitcoin by solving a complex mathematical problem through using high speed computing machinery that consume a large amount of electricity. This electricity that is being consumed by the mining rigs was not primarily sourced from renewable sources of energy. This led to further strain on the already worsening condition on the environment. It was estimated that bitcoin mining could consume as much energy as an entire country.
The negative impacts of Bitcoin mining emerged as mining Bitcoin became an increasingly costly task. The mathematical problems that have to be solved in order to obtain bitcoin as incentive, keeps on getting harder with passing time and consequently the hash rates have to be increased as well. Hence, a lot of electricity is consumed in order to mine merely 12.5 bitcoins per block.
The main dilemma miners are faced with is that there is no other way to mine bitcoin other than the aforementioned because since the inception of bitcoin, there has been only one way to mine them or to receive them as incentive for carrying out a transaction.
The aspect which can be controlled in this entire activity is that electricity which is being consumed by the mining rigs can be sourced from renewable sources. The sources which would not harm the environment by producing a carbon print.
Currently, electricity is sourced from coal mines, burning fossil fuels, and others all of which contribute to damaging the earth we live on. But fortunately, there is an abundance of natural sources of energy that do not produce a carbon print. These can be efficiently utilized in order to keep the environment healthy as well as mining a risk free activity. Due to this reason, many miners are also relocating to places where there is an abundance of renewable sources of energy.
There are a number of sources of renewable energy on our own planet. The most abundant one is sunlight. Solar panels can be installed in order accumulate the solar energy and incorporate that energy in mining activities. There is however one downside to using solar energy which is that the batteries which are used to store the solar energy are quite costly. But there are other options as well that include geothermal energy, wind energy and tidal energy. None of these cause greenhouse gas emissions and can really help in making environment safer.