As Bitcoin Reaches New Heights, Its Environmental Cost Grows Exponentially
Bitcoin’s value has surged dramatically, climbing from £7,000 to over £43,000 per coin within six months—its highest in three years. While some investors are reaping the rewards, the cryptocurrency’s rise has a significant environmental toll that’s increasingly hard to ignore.
Bitcoin’s underlying process, known as mining, demands an immense amount of computing power and energy, making it one of the least efficient currency systems in existence. This growing energy consumption strains supply chains and challenges global environmental goals, including those set by the Paris Agreement. Experts argue that urgent action is needed to mitigate these harmful effects.
The mining process incentivizes individuals to solve complex computations to add blocks to the Bitcoin blockchain, with each successful “miner” currently earning 6.25 Bitcoins—approximately £230,000 in value—every 10 minutes. Yet, Bitcoin’s design makes earning these rewards intentionally difficult, further fueling environmental costs as more equipment is required to meet the demand.