Cryptocurrencies, particularly those that rely on a "proof-of-work" (PoW) consensus mechanism like Bitcoin, require a huge energy consumption. PoW1 cryptocurrencies require a process called "mining" to validate transactions and add new blocks to the blockchain. This requires an enormous amount of computing power, and consequently, a massive consumption of electricity.
"Electricity" a significant portion of cryptocurrency mining is either dependent on fossil fuels or renewable energy. Electricity generated by burning fossil fuels creates carbon emissions, contributing to climate change and air pollution. While renewable energies (generally solar or wind turbines) reduces carbon emissions they are dependent on rare earth metals and the waste left at the end of their life span is an issue.
Electronic waste is also a direct problem related to Crypto mining. The specialized hardware used for mining, such as ASICs (Application-Specific Integrated Circuits), becomes obsolete relatively quickly due to increasing computational difficulty. This results in a large amount of electronic waste, which can be difficult to dispose of responsibly and may contain hazardous materials.
The overall carbon footprint of some cryptocurrencies is comparable to that of entire countries. This raises concerns about their sustainability and the potential impact on global efforts to reduce greenhouse gas emissions.
Whilst it's important to note that not all cryptocurrencies have the same environmental impact, there is an environmental price to pay. The aim of arboreteum is to directly use crypto to offset some of the environmental damage caused by the currencies conception.
1. "Proof-of-stake" (PoS) consensus mechanism consume significantly less energy than PoW cryptocurrencies. In PoS, validators are chosen based on the amount of cryptocurrency they "stake" or hold, rather than through energy-intensive mining.