Cons of Bitcoin for the Environment

Bitcoin and Ethereum, two of the most famous cryptocurrencies, are often referred to as real investment opportunities, and there is some truth to that. However, cryptocurrency is a complex idea that needs to be grasped and put into practice. The vast majority of Bitcoin owners have no idea how the basic cryptographic concepts work. Even if it does, it won’t be a deal breaker.

Although Bitcoin is a complicated system, investors who choose to invest in fiat currencies risk losing money due to the risks associated with trading in the traditional foreign exchange (Forex) markets.

This series has spent a lot of time boasting the virtues of blockchain and cryptocurrency. Some people (like well-known investor Warren Buffett) fear that cryptocurrency will be the next “bubble” due to its numerous drawbacks. Therefore, it is crucial to identify and understand the weaknesses and challenges that can prevent widespread adoption of these new technologies by the general population. Please visit for more information.

Bitcoin hardware environmental impact

Unfortunately, these days it is not just “mining” machines that are being built and used. The devices used today have a higher energy consumption than those used in Bitcoin’s early years. First generation miners used CPUs in conventional personal computers with processing powers of less than 0.01 (GH / s) and an efficiency of 9,000 (J / GH), according to the study by Stoll et al. (2019). These CPUs were retired in favor of the more common computers with 0.1-25 GH / s and 100-45 J / GH.


One of the most serious concerns with cryptocurrencies is the possibility of scalability issues. The acceptance and use of digital coins is increasing, but they are caused by the daily transaction volume of the payment giant VISA. It is complicated and time consuming to carry out such an evolution in real time. Although some have already suggested scalability issues, e.g. B. Lightning networks, sharing, and staking out, this is not the only option.


Cryptocurrencies tend to fluctuate in value from time to time. As with any investment, diversity is your best bet. Not being regulated by central banks means that the value of a coin is what buyers would pay for in the open market. Everything about Bitcoin is fraught with danger, so proceed with caution.

Electronic scrap

Bitcoin’s network has several problems, not just energy and technology. The analysis by Vries (2019) shows that bitcoin mining is out of date every 1.5 years due to a specialized (single-purpose) technology. As newer generations of mining machines become more energy efficient, older drilling rigs will eventually become obsolete and taken off the market. This is why the author created a Bitcoin Electronic Waste Monitor to keep track of how much electronic waste the Bitcoin network generates on a daily basis.

Cyber ​​security related issues

Because cryptocurrencies are digital, they are vulnerable to cybersecurity breaches and could get into the hands of hackers. As early as this summer, many ICOs were penetrated, causing investors to lose hundreds of millions of dollars (one attack alone cost investors $ 473 million). However, we are already seeing numerous players looking directly into it, taking enhanced cybersecurity measures beyond those found in the traditional banking industry, which requires ongoing maintenance of the security infrastructure to mitigate it.


Even in the bitcoin industry, even the most sincere company is more volatile and at risk. Financial institutions can now use the Ripple payment / exchange network to conduct daily transactions using the digital currency XRP, created and published by Ripple Labs Inc. in the United States. Ripple claimed to have a secure cross-border payment mechanism. With XRP at its core, the company intended to replace SWIFT, the established system that handles most financial transactions. XRP has now joined the range of cryptocurrencies available on Coinbase and other exchanges.

It was a point of contention for the Securities and Exchange Commission (SEC), which took legal action against Ripple alleging the company had violated securities regulations. The SEC stated that Ripple’s XRP was not an actual cryptocurrency, but rather a method of practically misleading investors.

Lack of intrinsic worth

Price volatility is a critical issue in the cryptocurrency ecosystem. It’s one of the properties that Buffet particularly mentioned a few weeks ago when he referred to it as a bubble. However, we can alleviate this significant problem by directly associating Bitcoin value with tangible and intangible goods. Consumer confidence should rise as adoption increases, which should decrease volatility.

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