The crypto crash will not reduce the sector’s climate impact any time soon – even if it is experiencing a crash
Economists are warning the crypto crash will not reduce the sector’s climate impacts.
In theory, the environmental footprint of digital currencies is set by their market value.
But The Guardian reports “there’s no reason to expect a decrease in environmental impact” while the sector struggles.
Research shows that when a crypto price increases more computer capacity is needed.
This increases carbon emissions and leads to long-term climate impacts.
Cryptocurrencies work by validating their transactions through huge numbers of “miners”.
These miners use their computers to solve complex problems in exchange for tokens as a reward.
