Impact of Crypto Mining on the Environment

Cryptocurrencies have been gaining a foothold in the global financial system since the end of 2008. These assets, which were not recognized by almost any country at the beginning, are becoming officially recognized after El Salvador declared Bitcoin a legal currency and countries such as the US and China introduced various regulations. The initial rationale for their emergence was to establish a decentralized secure structure by eliminating the over-centralized structures of central government units (state, bank, etc.) and to maintain the functioning of financial systems using less energy. However, mining activities, especially in the production process of cryptocurrencies, have caused the second rationale to be questioned over time. Countries where crypto miners have settled have tended to ban them by canceling their incentives for miners over time. This study examines the current and possible future impacts of cryptocurrency mining on the environment from a critical perspective. Qualitative method was used in the study. As a result of the study, it was concluded that cryptocurrency mining causes intense damage to the environment, increases the energy needs of countries with excessive electricity consumption and paves the way for the climate crisis, which is among the most important threats of the future.