The cost of Bitcoin that nobody calculates!...

For all the hype and enigma that surrounds the world of cryptocurrencies and their future potential, we need to evaluate them from all perspectives before arriving at the conclusion on how useful they might be or what valuation they should command. One of the lesser discussed facets is the process of mining cryptocurrency.

The process of mining involves a network of computers/supercomputers solving extremely complex hash functions (a series of digital mathematical equations) to mine the crypto coins. This process is extremely power intensive since the processors need to constantly cooled through cooling tunnels and also the process consumes a lot of power. Hence, the process of mining cryptocurrency is responsible for humongous amounts of CO2 being released into the atmosphere.

Let us use the stats of the most popular crypto, Bitcoin, to put things in perspective. A study conducted in late 2018 estimated the annual electricity consumption of Bitcoin at 45.8 TWH (Tera Watt Hours; equivalent to one million kilowatt hours!). The CO2 emissions were estimated at 53.32 Metric Tonnes, which is more than the annual output of Singapore!.

The above statistics are only pertaining to Bitcoin. Let us pause for a moment to think of the cumulative environmental impact of mining all existing cryptocurrency, which has been mined over the last ~13 years!. And the process of mining still continues and with more and more traction being gained by cryptocurrency, the amount of mining keeps on increasing in a hockey stick curve form!...

We set emphasis on the need for sustainable development, but it took the world 14 years and a tweet from Elon Musk to start talking about the environmental impact of mining cryptocurrency. We need to stop to think if the convenience and potential valuation of cryptocurrency is worth the massive environmental price tag attached to it!. Cryptocurrency miners and enthusiasts need to ponder and reflect over the fact that we are damaging environment for something that is worthless unless converted into fiat currency, eliminating the need for which was the vision of Blockchain and Bitcoin founder Satoshi Nakamoto.

Fads will come and go. Massive amounts of money might be lost in the process. But money can be earned back or printed again, new fads can also be started but damage to the environment, once inflicted, is irreversible!....We need to spare a thought!...