Cryptocurrencies: Increased Anthropogenic Impact

Abstract

The emergence of cryptocurrencies is a response of technological development to the loss of trust in fiat money and the global banking settlement system. The aim of this study is to review existing ideas about the essence and anthropogenic impact of cryptocurrencies and determine the feasibility of their further use. Methods of contextual selection, system analysis, and general scientific methods were employed. The results show that the politico-economic contradiction of cryptocurrencies is their unreliability to preserve value concurrently with the high value of their production and use. Cryptocurrencies, having not yet become a mass phenomenon, already have a significant impact on nature, and their mass use conflicts with the transition to a green economy. The key conclusion is that increased use of cryptocurrencies will lead to an exponential rise in the use of limited resources. The production and use of cryptocurrencies as goods are associated with both obvious costs and significant negative external effects. Most importantly, governments view cryptocurrency as a threat to public finances rather than an environmental one. A possible solution to these contradictions may be the synthesis of centralized and decentralized currencies.