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Energy Consumption of Crypto Mining: Consequences and Sustainable Solutions Using Systems Thinking and System Dynamics Analysis

Author

Listed:
  • Mohamd Laimon

    (Department of Mechanical Engineering, Al-Hussein Bin Talal University, Ma’an 71111, Jordan)

  • Rula Almadadha

    (Department of Accounting, Mutah University, Mutah 61710, Jordan)

  • Steven Goh

    (School of Engineering, University of Southern Queensland, Toowoomba, QLD 4350, Australia)

Abstract

Cryptocurrencies have gained global recognition, yet their rapid expansion is accompanied by significant environmental concerns due to their energy-intensive operations. This study employs novel system thinking and system dynamics approaches to examine the impact of cryptocurrencies on energy use, water consumption, and carbon emissions. The findings underscore the significant negative environmental impact resulting from cryptocurrency mining. According to our results, in 2023, the water consumption and carbon emissions of cryptocurrencies amounted to 1859 × 10 6 m 3 and 90.6 × 10 6 tons CO 2 e (0.25% of global CO 2 emissions), respectively, linked to the consumption of 119.7 × 10 6 MWh of electricity (0.5% of global electricity consumption). To provide context, this volume of water could fulfill the basic drinking water and sanitation needs of a global population that lacks access. Similarly, the electricity consumption equates to supplying a country like Argentina, which has a population of nearly 46 million. Without intervention, these figures are projected to increase sixfold by 2030. We recommend the adoption of renewable energy curtailment for Proof-of-Work cryptocurrency mining. Alternatively, technologies like the Pi network, based on the Stellar Consensus Protocol, offer a sustainable and energy-efficient solution.

Suggested Citation

  • Mohamd Laimon & Rula Almadadha & Steven Goh, 2025. "Energy Consumption of Crypto Mining: Consequences and Sustainable Solutions Using Systems Thinking and System Dynamics Analysis," Sustainability, MDPI, vol. 17(8), pages 1-9, April.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:8:p:3522-:d:1634676
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    References listed on IDEAS

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    1. Igor Makarov & Antoinette Schoar, 2022. "Cryptocurrencies and Decentralized Finance (DeFi)," NBER Working Papers 30006, National Bureau of Economic Research, Inc.
    2. Douglas J. Cumming & Sofia Johan & Anshum Pant, 2019. "Regulation of the Crypto-Economy: Managing Risks, Challenges, and Regulatory Uncertainty," JRFM, MDPI, vol. 12(3), pages 1-14, July.
    3. Igor Makarov & Antoinette Schoar, 2022. "Cryptocurrencies and Decentralized Finance (DeFi)," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 53(1 (Spring), pages 141-215.
    4. Laimon, M. & Yusaf, T., 2024. "Towards energy freedom: Exploring sustainable solutions for energy independence and self-sufficiency using integrated renewable energy-driven hydrogen system," Renewable Energy, Elsevier, vol. 222(C).
    5. Makarov, Igor & Schoar, Antoinette, 2022. "Cryptocurrencies and decentralized finance (DeFi)," LSE Research Online Documents on Economics 117711, London School of Economics and Political Science, LSE Library.
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