As with most things in life, it seems that this issue is far more complex than it seems. Of course, there are going to be people on both sides shouting “Yes!” and “No!” at the same time while saying it’s obvious all in the same breath. The impact of cryptocurrency mining adds a layer of complexity, as it touches on global economies, environmental concerns, and technological advances.

But, when it comes down to it, there are far more things to consider than whether you are going to make a quick buck from investing in the latest digital coinage. There could be severe real world consequences to what you choose to support or invest in.

Now, many of you may be thinking that you should just switch tabs back to PlayCroco casino and ignore me. Your friend has made a good stack of cash from Bitcoin, or your uncle’s cousin was able to buy a car because he invested.

However, I implore you to think about all the possible consequences of your actions. There is a darker side to the cryptocurrency industry, and it is having real world and possibly devastating effects on the world right now!

Now, although, as I will explain later, cryptocurrency could be having quite negative effects on the world, I don’t want you to take me for some sort of doom seer. I’m not saying cryptocurrency is the root of all evil, and should be destroyed.

However, I just think it is important to be informed as to what effects you could or could not be having on other people’s lives or the world.

What is Cryptocurrency?

Before we get into other things, I think it is important to discuss what cryptocurrency is in order to be more clear about what it is we are speaking about.

According to Forbes, “Cryptocurrency is decentralized digital money, based on blockchain technology.” This essentially means that it is a form of money that is not based on a government or central bank.

Forbes continues to give a good explanation of how cryptocurrency works by saying, “A cryptocurrency is a medium of exchange that is digital, encrypted and decentralized. Unlike the U.S. Dollar or the Euro, there is no central authority that manages and maintains the value of a cryptocurrency. Instead, these tasks are broadly distributed among a cryptocurrency’s users via the internet.” However, the impact of cryptocurrency mining can be significant, as it requires substantial energy resources and contributes to environmental concerns.

This means that even if your government collapses, or your countries economy goes down the drain, your Bitcoins or whatever other kind of cryptocurrency will still be worth just as much as they were before that happened.

This is a big bonus for people who support cryptocurrency. It is a relatively stable form of currency and is unaffected by what is going on in your local economy. Its value is given to it by people globally, so it has a universal global value.

Positives of Cryptocurrency

Before we discuss the negative aspects of cryptocurrency, let’s first look at the positives supporters highlight.

One key advantage is that cryptocurrency is completely anonymous. When you make a purchase with crypto, no one knows who you are.

Some may argue that only criminals seek anonymity. While it’s true that some may misuse it, that shouldn’t mean law-abiding citizens can’t enjoy anonymous transactions.

In a world where privacy is increasingly hard to maintain, I understand why people want to make purchases or conduct business without someone peeking into their actions.

The Privacy Benefits of Cryptocurrency Transactions

Some people want to live a private life and don’t think it’s anyone’s business what they choose to buy or do. Honestly, I can’t blame them.

Another positive aspect of cryptocurrencies is faster transactions, especially for international transfers. You don’t have to worry about currency conversions or the usual bank processes. However, the impact of cryptocurrency mining can slow down transaction speeds. The energy consumption required for mining can sometimes slow the network, especially during periods of high demand.

But the situation may be more complicated than it seems. Not everyone agrees that crypto transactions are faster than regular bank transfers.

Finally, people often mention lower transfer fees with crypto. This is especially true for international transfers, as you avoid paying government or bank fees for currency conversion.

Negatives of Cryptocurrency

How Cryptocurrency Mining Affects Transaction Speeds

Another big problem that has been attributed to cryptocurrency mining is the current global silicon shortage. Silicon is an incredibly important semi conductor used in essentially all electronics manufacturing.

This leaves shelves empty, and average consumers who are looking to buy computer components high and dry. It is currently still several times more expensive to buy computer components such as GPUs and CPUs than it was a few years ago.

That is, of course, if you can even find those components to begin with. Usually, they are bought up and go “faster than hotcakes” as they say.

Despite all this, you cannot blame only cryptocurrency miners for the computer component shortages. That is a very large and very political issue that goes beyond people trying to make money off of the latest crypto coin.

Environmental Impact of Cryptocurrency Mining Explained

But, it certainly hasn’t helped the issue, so I think in today’s market it is worth mentioning.

Now, all of these issues can be compared to other industries and forms of banking, and they might not seem as bad. However, that is the fallacy of “what about-ism.” The impact of cryptocurrency mining on the environment and technology industries, such as the increased demand for power and the strain on semiconductor supplies, may be overlooked in such comparisons, but it remains a significant concern that cannot be ignored.

Just because something is worse than what you are currently doing, doesn’t make what you are doing good. Stay informed, and make the best decisions based on the information you have!