The sustainability of the Bitcoin network has created a lot of uncertainty, as this fascinating and emerging technology faces several unsupported assertions from uninformed individuals that Bitcoin is highly unsustainable from a social, economic and environmental point of view. Broadly available public information strongly refutes the claims that Bitcoin is unsustainable and shows that social, environmental and economic impacts represent only a tiny fraction of the impacts of legacy monetary systems on our society and environment. Money makes the world go round and for centuries paper money and coins have been the physical manifestation of money. Once upon a time, most paper currencies in the world were backed by gold and traded directly against it. This system of supporting currencies with tangible and universally tradable reserves was known as the Bretton Woods system and was used to help the world rebuild economically after the Second World War. On August 15, 1971, US President Richard Nixon ended the Bretton Woods system, known as the “Nixon Shock”, allowing all currencies to float freely, with the support of faith and the credit of their sovereign state. This type of currency is called “fiduciary money”
With the integrated “infinite” inflation of fiat money, more and more physical currency will have to be printed and stamped each year unless we move to a fully digital transaction system. Although there is little aggregate data, we can analyze the data on polymer-based coins, notes and notes from major world economies. Due to its inherent physical and economic properties, fiat money can be a key player in sustaining change. Paper money is very easy to counterfeit and bleach, and almost impossible to find and follow. Due to its inflationary nature, harmful types such as drug traffickers, human traffickers, corrupt officials and other members of the underground economy use it as the currency of choice to facilitate their ongoing operations. The cost of printing the currency is much lower than that of the value of money. This results in inflation / loss of consumer purchasing power. Global average annual inflation is 3.9%, so your money is worth more than 30% less after 10 years. In addition to the social damage and billions of dollars that money laundering is costing the global economy, it is estimated that governments around the world are losing an additional $ 1.6 trillion every year due to the corruption of politicians and government officials .
Transaction fraud, mainly through credit and debit cards, costs the global economy $ 190 billion annually. While ATMs reduce the need for bank branches, banks have their own carbon footprint, which is not trivial. It is very difficult to quantify the overall impact of the banking and financial system, but there are some key figures that we can rely on for an order of magnitude estimate. It is important to note that, while this can be interpreted as a comparison of apples to oranges, it is also important to have a frame of reference on the enormous environmental impact of the banking sector and to illustrate the fact that we must make sure that we avoid having the same negative impact that we have had in the past if Bitcoin were to succeed and adapt to the size of the existing system The landscape of the Bitcoin mining industry is very dynamic and has experienced significant changes since the network was created in January 2009. It is a perfectly competitive environment. market, and anyone in the world can join him because of the lack of significant barriers to entry.
Our easy public ease dollars are fueling the world’s worst humanitarian crisis, the need for stability for the military. The carbon footprint of the US military is huge. Like corporate supply chains, it relies on a vast global network of container ships, trucks and cargo planes to deliver everything from bombs to humanitarian aid to oil. The accounting for greenhouse gas emissions generally relates to the amount of energy and fuel used by civilians. But recent work shows that the US military is one of the biggest polluters in history, consuming more liquid fuels and emitting more gas that modifies the climate than most medium-sized countries. If the US military was a country, its fuel consumption alone would make it the 47th largest emitter of greenhouse gases in the world, between Peru and Portugal. While the US military uses almost as much energy as Bitcoin, it should be noted that there are few activities on Earth as environmentally catastrophic as the war. Significant reductions in the Pentagon budget and a reduction in its ability to wage a war would lead to a significant drop in the demand for the largest consumer of liquid fuels in the world. In addition, Bitcoin sources up to 74% of its energy from renewable energy.