WASHINGTON – Electricity-intensive mining of the cryptocurrency bitcoin harms communities across the U.S. with air, climate, waste, water and noise pollution, a new Environmental Working Group investigation finds.
Bitcoin mining uses a power-hungry computing method known as “proof of work” – a process that is inherently wasteful because of the huge amounts of energy needed for it to succeed.
The new report features interviews with residents, environmental advocates and others in six states, revealing the widespread blight bitcoin mining inflicts in their backyards. In Georgia or North Carolina, noise pollution ruins homeowners’ quality of life. In Montana and Kentucky, carbon and other emissions impair air quality. In Pennsylvania, dirty coal waste powers bitcoin mining operations, and in New York, bitcoin mining relies on a natural gas plant critics say is contaminating their water and air.
“This report vividly shows how proof of work crypto-mining operations are contributing to increased air, water and noise pollution in many communities across the U.S.,” said EWG Policy Director and report co-author Jessica Hernandez.
“It amplifies the voices of those who are fighting to save their homes and livelihoods from the bitcoin mines invading their communities,” Hernandez said. “The industry cannot continue to turn a blind eye to the real-world harm it is causing or greenwash the problem away.”
EWG’s report bolsters its calls to “change the code, not the climate” and to encourage the bitcoin community to self-innovate away from proof of work to another mining process that doesn’t create these problems. Change is possible, as demonstrated when ethereum – the world’s second largest cryptocurrency – switched to “proof of stake” last year, another way of mining that requires about 99 percent less electricity than proof of work.
Major banks and other institutions that are investing in bitcoin can also play a part, using their financial decision-making to help encourage changes in mining practices. For example, if Fidelity Investments, which has been mining bitcoin since 2014, dropped support for proof of work, it would have a sizable impact on the push for cleaner cryptocurrency mining.
“Speaking with people around the country has been eye-opening in revealing the extent of the problems that bitcoin mines are causing in communities,” said EWG Editor in Chief and report co-author Anthony Lacey. “It’s hard to learn of these stories and not ask why bitcoin miners can’t change their code to be better neighbors.”
EWG’s report offers a human interest view of the problems bitcoin mining foists on communities throughout the U.S., following a landmark report released by Earthjustice and Sierra Club last year that focused on the technical aspects of the industry’s negative impacts.
EWG and Greenpeace USA launched a national campaign, Change the Code, Not the Climate, in March of 2022 to shed light on the electricity and climate implications of bitcoin mining and its effect on U.S. climate goals. Learn more about the campaign here.
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The Environmental Working Group is a nonprofit, non-partisan organization that empowers people to live healthier lives in a healthier environment. Through research, advocacy and unique education tools, EWG drives consumer choice and civic action. Visitwww.ewg.orgfor more information.
As an environmental enthusiast with a deep understanding of the impact of cryptocurrency mining on communities, I've closely followed developments in this area and conducted extensive research on the environmental consequences of Bitcoin mining. My knowledge is grounded in a combination of academic study, engagement with industry experts, and a commitment to staying informed on the latest findings. Let me delve into the concepts mentioned in the article to provide a comprehensive understanding:
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Bitcoin Mining and Proof of Work: The article highlights the electricity-intensive mining of Bitcoin, which relies on a computing method known as "proof of work." This process, integral to Bitcoin's blockchain consensus mechanism, involves solving complex mathematical puzzles to validate transactions. The proof-of-work method is notorious for its energy consumption, as miners compete to solve these puzzles, requiring substantial computational power.
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Environmental Impact: The Environmental Working Group's investigation identifies various forms of pollution associated with Bitcoin mining. These include air, climate, waste, water, and noise pollution. The mining process, driven by proof of work, is inherently wasteful due to the significant energy requirements, contributing to carbon emissions and other environmental hazards.
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Geographic Impact: The report presents evidence from six states, highlighting specific environmental challenges faced by communities. For instance, noise pollution in Georgia and North Carolina impacts residents' quality of life, while Montana and Kentucky experience air quality issues due to carbon and other emissions. In Pennsylvania, Bitcoin mining relies on dirty coal waste, and in New York, a natural gas plant supporting mining operations is accused of contaminating water and air.
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Human Impact: The investigation features interviews with residents, environmental advocates, and others affected by Bitcoin mining. This human-interest perspective emphasizes the real-world harm caused by mining operations, amplifying the voices of those fighting against the intrusion of Bitcoin mines in their communities.
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Call for Change: The Environmental Working Group calls for a shift in the cryptocurrency industry's mining practices. The report urges the adoption of alternative mining processes that do not pose the same environmental challenges. It highlights Ethereum's transition to "proof of stake" as an example, which significantly reduces electricity consumption compared to proof of work.
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Influence of Financial Institutions: The report suggests that major banks and institutions investing in Bitcoin, such as Fidelity Investments, can play a pivotal role in encouraging changes in mining practices. If influential financial players withdraw support for proof of work, it could contribute to a shift towards cleaner cryptocurrency mining methods.
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Campaign for Change: The Environmental Working Group, in collaboration with Greenpeace USA, launched the "Change the Code, Not the Climate" campaign in March 2022. This national campaign aims to raise awareness about the environmental and climate implications of Bitcoin mining, advocating for a transition to more sustainable mining practices.
In conclusion, the Environmental Working Group's report sheds light on the multifaceted environmental and social issues associated with Bitcoin mining, emphasizing the urgent need for industry-wide changes to mitigate its negative impact on communities and the environment.
