Digital currencies have come a long way from their obscure assets, while the prevailing financial world despised digital currencies as tools for criminals and speculators, the industry has made significant progress in change, but doubts remain about adopting a single currency. In particular, many environmentalists raised concerns about energy consumption in mining code coins; This could cause increased carbon emissions and climate change.

The negative effects of digital currencies:

  • Some currencies require large amounts of energy Because of the calculations needed for mining. 

  • According to the latest estimates, the Bitcoin grid uses a lot of power in one year, such as the Country of Argentina. 65% of Bitcoin miners are located in China, a country that generates most of its energy from coal.

  • Some proponents argue that as many as 74% of the energy needs of digital currencies come from renewable sources, although these numbers are disputed.

  • The Bitcoin network generates 11.5 kilotons of e-waste each year.

  •  Not all cryptocurrencies have significant environmental impacts; Many of them do not use mining at all.

What does China have to do with carbon emissions?

At first, miners worked in coin mining using their personal computers, but with the digital currency rise, more efficient and efficient devices were required; This means more energy is consumed. 75% of Bitcoin coins are mined in China, especially in rural areas, and two-thirds of the electricity consumed in China comes from coal. The higher the price of bitcoin; The amount of energy consumed also increased Thus increasing environmental pollution, carbon emissions accelerating the process of global warming.

Experts said: "All encrypted currencies are harmful to the environment in general, but some have less impact according to data center statistics (TRG)." According to the company based in Houston, Texas, United States of America, "the digital XRP currency is less harmful; 0.0079 kWh for use."