<h5>What is cryptocurrency?</h5><p>Cryptocurrency is digital money. It is made of two words. Crypto, which means to keep something protected, and currency, which can be used to buy things. This isn’t physical money that you can touch or see, but it can be used to buy things on the internet.</p><p>The first cryptocurrency ever was Bitcoin (launched in 2009). Many cryptocurrencies have been made since then, but Bitcoin remains the most popular. The money we use daily is printed by the government and distributed by banks. But cryptocurrency is produced and traded on the internet.</p><p>No government has control over it. That’s why their use has been banned in many countries, such as Egypt, China, Bangladesh and Iraq. Also, anyone can make bitcoins. Cryptocurrencies are built on a technology called a blockchain.</p><p>Blockchain consists of a series of blocks which contain information. These blocks are connected in a specific order. A secret code is required each time anyone wants to add another block of information to the blockchain. This unique blockchain technology makes cryptocurrency impossible to counterfeit.</p><p>To find out this secret code, people have to solve a complicated mathematical puzzle. Sometimes, it can take years before a powerful computer can solve this puzzle. This process is known as mining. The first Bitcoin miner who can solve this puzzle gets awarded some cryptocurrency as a reward.</p><figure class="image"><img src="https://firebasestorage.googleapis.com/v0/b/newsahoot.appspot.com/o/the-environmental-impact-of-cryptocurrency%2FBitcoin.jpeg?alt=media&amp;token=31cfd58a-d381-4800-a504-49a140310afe&amp;_gl=1*1svhojv*_ga*MTIzNjQ0ODg2NS4xNjgzNzk5MjMy*_ga_CW55HF8NVT*MTY5OTI1NTM1NS4yOTYuMS4xNjk5MjU2NDA0LjQ3LjAuMA.."><figcaption>Digital representation of the Bitcoin. Photo by Pexels.</figcaption></figure><h5>If all this is digital, why is the environment getting affected?</h5><p>Mining cryptocurrency uses a lot of electricity and fossil fuels. If you want to solve complex mathematical puzzles to get bitcoins, you need a super-fast computer. These computers require a lot of electricity to function.</p><p>People across the world are mining Bitcoin so aggressively that they’re using a lot of electricity. Such large consumption of electricity (generated mostly from fossil fuels) can push back efforts to combat climate change. Bitcoin also has lots of effects on water and land. Bitcoin mining also emitted lots of carbon dioxide in the past, harming the climate.</p><p>Electricity is a valuable resource. Many poor countries face power shortages and cannot supply enough electricity to their people. Many people believe that this electricity could be shared with them instead of being used to mine digital currencies.</p><h5>Are we protecting ourselves from resource-hungry cryptocurrencies?</h5><p>Many energy companies and environmentalists have taken up this cause quite seriously. Together, they signed the Crypto Climate Accords in 2021. This mission aims to control the pollution caused by cryptocurrency mining by 2030.</p><p>Recently, there has been a small but significant shift in digital currencies. Nano, IOTA and Chia are some new eco-friendly digital currencies. They have changed their use of blockchain technology to use much less electricity than others. Technology is essential, but it should never come at the price of our dear planet.</p>

Mining cryptocurrencies requires a lot of electricity, which mostly comes from fossil fuels.

The Environmental Impact of Cryptocurrency

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The Environmental Impact of Cryptocurrency

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