BITCOIN MINING AND ITS ENVIRONMENTAL EFFECTS

Abstract

Bitcoin, with its market value among cryptocurrenciesand being the biggest in terms of its processing volume, carries greatpotential in terms of low cost, speedy processing and low-level risk while alsobringing with it important global-level change and transformation. On the otherhand, the fact that cryptocurrencies and Bitcoin specifically are new, ofunclear legal status, and carry the risk of being involved in illegal activity,there is the potential for their use as an extremely volatile and speculativeinvestment tool and have environmental effects. This study examines Bitcoinmining and blockchain technology and investigates the high amounts of energyconsumed by Bitcoin and its environmental effects. It is argued that the energyconsumed as a result of increased Bitcoin mining will have environmental andsocial consequences, such as global warming and climate change.