The Implications of Bitcoin Mining on the Environment “Risks and Solutions”

Abstract

The verification of transactions that take place with the Bitcoin currency is done by a process called mining. This process requires solving complex mathematical equations that are difficult for the human mind to do. Therefore, it needs machines and equipment for mining and advanced computer processors. These equipment and machines, in turn, need high electrical energy. In a study conducted, it was stated that Bitcoin mining consumes high electrical energy that reaches from 120 to 240 billion kilowatt-hours annually, which is equivalent to 0 4% to 0.9% of the world's energy use annually. In addition to that, mining devices emit high thermal energy, in addition to that, mining devices are quickly damaged due to electrical energy and frequent use. Therefore, the failure of these devices results in electronic waste entering the environment. All this, in turn, negatively affects the environment. This is the research problem. This research aims to identify the environmental risks of mining Bitcoin, in addition to proposing solutions to address these risks. In this research, we relied on the analytical and descriptive approach to explain and describe the impact of Bitcoin mining on the environment. We divided the research into two requirements, and we devoted the first to researching the nature of bitcoin mining, and the second we devoted it to researching the risks of bitcoin mining on the environment and the proposed solutions.