Are cryptocurrencies bad for environment?

In recent times, people are becoming more and more aware of the things causing harm to the environment. Similar is concern for cryptocurrencies. Cryptocurrencies are made through a process called mining.

Mining is the process in which a miner solve complex math equations, and as a return, gets a portion of cryptocurrency asset like bitcoin, depending upon what he/she is mining. Mining comes with high energy consumption which means that it requires strong computers that use lots of electricity, hence consuming lots of energy. The consumption of energy effects the environment in many ways like greenhouse gas emissions, air pollution etc.

Since cryptocurrencies are fairly new, that is why they are mined through a complex procedure. Nowadays there is a mechanism used to verify the cryptocurrency transactions called proof of stake. Using this system, people having cryptocurrency can stake their coins, pledging the coins to be used for verification, which then gives the owners the right to check and add new blocks of transactions to blockchain. This method much more eco-friendly since proof of stake doesn’t require solving all complex equations to verify transactions. It has gotten much more attention as concerns regarding the effects of mining on our planet were rising.

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