By: John Michael Pierobon
Cryptocurrencies are good for criminals, bad for the environment and ugly for the consumer.
Sen. Elizabeth Warren, D-Mass., stated that cryptocurrency is "an attractive financial tool for terrorists, drug traffickers and rogue nations."
Jamie Dimon, CEO of JPMorgan Chase, who recently addressed Congress on cryptocurrency, agreed, "The only true use case for it is criminals, drug traffickers, money laundering, tax avoidance."
Sen. Roger Marshall, R-Kansas, called cryptocurrency a "threat to our national security."
Last year, ransomware payments exceeded a billion dollars. Criminals commit crimes because they believe they can get away with it. Ransomware hackers have found cryptocurrencies to be the perfect solution to move and hide huge sums of ill-gotten gains without getting caught. Cryptocurrencies make it possible to attack large companies, hospitals and local governments, including the Broward County School District and cities such as Pembroke Pines. This adversely affects the general public, causing severe disruptions in gasoline supplies, food distribution, medical attention and government services.
Mining cryptocurrency consumes staggering amounts of energy. In 2022, according to the University of Cambridge, it exceeded the amount of electricity consumed in 170 countries. The amount of electricity consumed to mine cryptocurrency continues to grow exponentially.
The majority of the electricity used in cryptocurrency mining comes from non-renewable sources such as coal and natural gas. Burning these fuels releases greenhouse gases into the atmosphere. In 2022, the White House estimated the amount of greenhouse gas emissions from cryptocurrency mining was similar to emissions from diesel fuel used in all the railroads in the United States.
Mining cryptocurrency also leads to the production of electronic waste as specialized mining hardware becomes obsolete and is replaced by more powerful equipment. It also contributes to noise pollution and water pollution due to cooling systems used to keep mining infrastructure running optimally.
The concentration of these mining operations in regions with cheap electricity strains electrical grids, leads to deforestation and habitat destruction, and increased pollution, while driving up electricity costs for residents and businesses.
For example, according to Hydro-Québec, in the province of Québec, the electricity demand from cryptocurrency miners amounted to 24% of its total generating capacity in 2018. In 2021, Iceland experienced a severe electricity shortage, causing its main utility provider to reject all future cryptocurrency mining power requests.
While these miners say they use renewable energy and carbon offsets, the fact is that carbon offsets do not reduce global emissions, they just move them around the globe. Higher demand for electricity leads to higher electrical bills for consumers.
Cryptocurrencies pose a clear and present danger as they continue to impose a host of negative consequences, from enabling criminal activities to exacerbating environmental degradation and burdening consumers.
I agree with Sen. Jon Tester, D-Montana, who said, "I see no reason why this stuff should exist. I really don't."
And with Dimon, who said "If I was the government, I'd close it down."