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- 1 Crypto mining is considered an energy-intensive process.
- 2 Market downturn last year had a negative impact on mining activities.
Since Ethereum has shifted their operations to its Beacon chain, the blockchain has gone carbon free. Crypto mining is one activity proving to be hazardous for the environment. With extremely high energy needs, miners are required to establish advanced setups to meet the ends. Recently, the World Economic Forum (WEF) revealed in a promo video a company trying to capture methane emitted from flaring to convert it into power to be used further in different activities.
Crypto Mining Sector Generated $734M in March 2023
Though the video wasn’t actually related to cryptocurrency mining, it does show a glimpse of mining setups used in the activity. Experts and the crypto community are still debating over the energy consumption from mining activities but have not yet come to a consensus.
Crusoe, an energy-focused company, remains the main focus of the video. They are capturing methane to make energy for powering computer infrastructure. Methane is among the most hazardous greenhouse gasses affecting the environment at large. It leads to formation of ground-level ozone. The gas is 80 times more at warning in contrast to carbon-di-oxide, a major contributor to global warming. Data suggests that more areas are warming than cooling.
According to the data, 1 Bitcoin transaction is allegedly equivalent to 100,000 Visa transactions, consuming around 1,200 kWh of energy. Crypto mining has proven itself as a profitable niche for miners though the market downturn shed a negative impact on the sector last year. However, latest data shows that the space has started to recover considering it generated $734 Million in March 2023. Foundry USA remained the highest grossing company with 1,468 Bitcoin blocks founded.
Flaring being one of the most damaging processes leading to ozone layer depletion, the initiative by Crusoe can potentially prove a boon. On one hand, it will decline the carbon emissions from the process, on the other, it would make methane another energy source to be used in other activities.
World Bank data shows that Russia is currently on top with respect to flaring activities followed by Iraq and Iran. The international financial institution has also asked energy companies to stop flaring by 2030. In 2021, energy companies flared 144 Billion cubic meters of gas. The process is important to prevent explosions due to the pressure created underground. However, it can cause illnesses like headaches, lung diseases and more.
Furthermore, flaring is among the reasons melting ice caps globally. With a larger enough vantage point, the process can lead to acid rain which in turn can exploit water and agricultural sources. Nonetheless, companies are leaning more towards natural gas to combat processes like flaring.
Many deem cryptocurrencies as a revolution in the finance sector, however, they do pose a threat to the environment. But with enough attention, the technology can be rendered less hazardous to prevent cataclysmic nuances in future.
Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.
