“Imagine if keeping your car idling 24/7 produced solved Sudokus you could trade for heroin.” That’s how one Twitter user described the production, transaction, and utility of Bitcoin and other cryptocurrencies back in 2018. Though it’s an exaggeration, that description isn’t entirely off-base—cryptocurrencies require massive amounts of energy to be produced and used. Bitcoin has the yearly carbon footprint equivalent to the Czech Republic while producing as much annual electronic waste as the Netherlands.
Those numbers haven’t stymied the contention among many cryptocurrency enthusiasts that this is a singular solution to all the world’s energy problems. “Bitcoin mining solves a number of climate issues, while also creating a more profitable model,” crypto enthusiast Anthony Pompliano wrote last August.
Many developers say they are working on cryptocurrencies that are supposed to encourage eco-friendly practices, and even tokenize carbon offsets. While these solutions sound appealing on the surface, climate and environmental policy experts are dubious they will have much impact mitigating climate change and changing our energy habits. Even though some of these projects are driven by techies with good intentions, these quick fixes and greenwashing proposals are unlikely to bring us closer to a zero-emissions world.
For the uninitiated, Bitcoin and many other cryptocurrencies use a Proof of Work verification method to add new transactions to the…
