#21 Ditch the crypto

High risk investments like cryptocurrencies may be baffling, wild or downright stupid depending on your perspective. But we're not here to offer investment advice. We're here to talk about their massive power consumption.

Bitcoin and similar cryptocurrencies burn massive amounts of energy just to function. Bitcoin mining in the US is consuming over 2% of the country's energy. That's enough energy to power a whole state. Worldwide, cryptocurrency mining uses as much energy as the whole of Australia.

Cryptocurrencies are designed to burn power

All of this energy is used to solve hard maths problems—the way these cryptocurrencies keep stable and functioning. This 'mining' process can also be profitable, which is why businesses have sprung up around the world running crypto mining operations. They'll take whatever power they can, so long as it's cheap. Often from low-grade, highly polluting power plants.

The maths isn't useful in itself, it's literally designed to use as much energy as possible. In short, with few exceptions^*, cryptocurrencies like Bitcoin have to burn power in order to function. Their stability depends on it. But if we want a healthy, stable planet we need to be wise and careful with energy use and reduce consumption wherever we can. An investment in your future is not a great investment if it's killing the place you call home.

If you really do like high risk investments, there are plenty of options out there to invest in new and unproven energy technology—like harvesting electricity from the air. Choose to invest there and at least you're investing in a better future (even though you might still lose your money).

But all financial transactions use energy, right?

It's true that all financial systems use energy. But cryptocurrencies are the only ones that consume power through choice. Normal financial institutions try hard to reduce their power usage, because it costs them money!

* And those exceptions? In 2022, Ethereum switched its algorithms from proof-of-work to proof-of-stake, reducing its energy consumption by 99.95%. A far less carbon-intensive approach, though it doesn't make it any less risky as an investment.

It's a long journey

The more we act, the more we share, the more we have a movement towards a healthier, safer, more prosperous future for us all.

— 200 ways