As Cryptocurrency Becomes Mainstream, Its Carbon Footprint Can’t Be Ignored

As Bitcoin prices rise, so will the incentive to mine it, creating a feedback loop that spells trouble for the climate.
For advocates of cryptocurrency, the promise of an economic future that is managed by a blockchain (a decentralized database that is shared among the nodes of a computer network, as opposed to being held in a single location, such as a central bank) is compelling. For anyone paying attention, the rapid expansion of cryptocurrency has been stunning. In 2019, the global cryptocurrency market was approximately $793 million. It’s now expected to reach nearly $5.2 billion by 2026, according to a report by the market research organization Facts and Factors. In just one year—between July 2020 and June 2021—the global adoption of cryptocurrency surged by more than 880 percent.