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The Environmental Paradox of Digital Currency Mining: Innovation at Nature’s Expense

In: Digital Currencies and the Green Economy

Author

Listed:
  • Amisha Sherawat

    (Central University of Haryana, Department of Economics)

  • Ranjan Aneja

    (Central University of Haryana, Department of Economics)

Abstract

The rapid expansion of digital currency mining has triggered significant environmental concerns due to its extensive resource consumption and ecological footprint. This chapter examines the multifaceted environmental impacts of cryptocurrency mining, especially bitcoin, focusing on its energy consumption, greenhouse gas emissions, water and land footprints, e-waste generation and impacts on local communities. Initially, we contextualize the blockchain fundamentals and consensus mechanisms of currency mining detailing how mining operates through computational puzzles and decentralization validation. Further, we analysed the staggering energy demand of proof of work mechanisms including its carbon intensity and greenhouse gas emissions of bitcoin. Drawing on the empirical data, the study highlights how bitcoin mining contributes to the rising carbon, land and water footprints across the globe. Additionally, the chapter explores the growing problem of e-waste generated from obsolete hardware. Finally, the study discussed how digital currency mining has serious impacts on the quality-of-life of local communities. By synthesizing the impacts, this chapter advocates for the urgent sustainable alternatives to mitigate the ecological harm of cryptocurrency mining while balancing technological innovation.

Suggested Citation

  • Amisha Sherawat & Ranjan Aneja, 2025. "The Environmental Paradox of Digital Currency Mining: Innovation at Nature’s Expense," Springer Books, in: Ranjan Aneja & Robert Dygas (ed.), Digital Currencies and the Green Economy, chapter 0, pages 443-467, Springer.
    • Handle: RePEc:spr:sprchp:978-981-95-2282-8_19
    DOI: 10.1007/978-981-95-2282-8_19
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