BITCOIN mining has long been praised as a revolutionary approach to financial freedom and decentralisation.
But what most people fail to recognise is the devastating impact that this process has on both the environment and the people who live in close proximity to these so-called “mines”. The true cost of bitcoin mining is much higher than meets the mainstream eye.
Bitcoin mining is the process of solving complex mathematical problems to validate transactions on the blockchain. Miners are rewarded with new Bitcoin as an incentive for their work.
This process requires an enormous amount of computational power which in turn requires massive amounts of electricity. As a result, bitcoin mining consumes more energy than entire countries such as Argentina and Ukraine.
This excessive consumption of energy has a direct impact on the environment. In China, where a significant portion of bitcoin mining takes place, coal is the primary source of energy.
As a result, bitcoin mining in China alone produces more carbon emissions than the entire country of New Zealand.
Human cost
The human toll of Bitcoin mining is equally concerning. Many Bitcoin mines are located in rural areas of developing countries where residents lack access to basic amenities such as clean water and healthcare.
These communities are often forced to live with the pollution and health hazards that result from the mining process.
Furthermore, miners often work in dangerous and exploitative conditions. In countries such as Congo where a significant portion of the world’s cobalt is mined, child labour and human rights abuses are prevalent.
The impact of bitcoin mining on the environment and human rights is a ticking time bomb. As the world becomes increasingly aware of the true cost of bitcoin mining, it is likely that we will see a shift in public perception towards digital currencies.
Businesses will also need to consider the environmental and social impact of their digital currency investments.
As bitcoin continues to grow in popularity, it is crucial that we take a closer look at the real cost of Bitcoin mining. It is not just about the financial cost but also the environmental and human toll.
We need to start asking ourselves whether the benefits of Bitcoin outweigh its true cost. – April 12, 2023
Julia Vorontsova is founder and CEO of Innovation Park which specialises in helping globally innovative and creative businesses connect with investors and funding opportunities.
The views expressed are solely of the author and do not necessarily reflect those of Focus Malaysia.
