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Cryptocurrency Mining from an Economic and Environmental

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Cryptocurrency Mining from an Economic and Environmental ( cryptocurrency-mining-from-an-economic-and-environmental )

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Energies 2021, 14, 4254 8 of 22 studies [56–58] there is a strong relationship between economic growth and environmental quality and concern for the sustainability of their citizens. If we extend the list of analysis to fifteen countries, only one non-European country appears on the list, partially breaking with the previous trend: Israel. The remaining countries to complete the list of fifteen countries are the Czech Republic, Ireland, the Netherlands, Portugal, and France. This list Energies 2021, 14, x FOR PEER REVIEW 9 of 24 can be consulted in the appendix, in Table A4. Figure 2. Most sustainable countries for cryptocurrency mining. Source: Own elaboration using Figure 2. Most sustainable countries for cryptocurrency mining. Source: Own elaboration using Tableau Desktop Professional Edition. Tableau Desktop Professional Edition. In both cases (European and Asian) there is another parallelism: they are all countries Table 5. Most and least sustainable countries for cryptocurrency mining index. in the northern hemisphere, and within the northern hemisphere, most of them are located Country Denmark Germany Sweden South Korea Switzerland Finland Japan Austria United Kingdom Israel Czech Republic Portugal Ireland Netherlands France Most Sustainable Country for Country Least Sustainable Country for CrypteorcnurhremnciyspMhienrien,galIlntdhexcountries at the top of the rankinCgrysphtaorceuarrceonmcymMoincinhgarIancdtexristic: in the northern part of the northern hemisphere. In addition to their location in the north- they have a high or very high GDP and GDP per capita. Additionally, according to several 87.0 Bolivia 9.3 studies [56–58] there is a strong relationship between economic growth and environmen- 82.3 Suriname 9.4 tal quality and concern for the sustainability of their citizens. If we extend the list of anal- 78.3 Libya 10.0 ysis to 7f7if.t2een countries, only oneVnenoenz-uEeularopean country appears 1o0n.2the list, partially breakin7g7.w0 ith the previous trend: IsrCauebl.aThe remaining countries to11c.o4mplete the list of 76.8 Belize 15.3 fifteen countries are the Czech Republic, Ireland, the Netherlands, Portugal, and France. 76.5 Barbados 15.7 This list can be consulted in the appendix, in Table A4. 73.0 Bahamas 16.5 On the contrasting side we would find those countries in which mining cryptocur- 73.0 Taiwan 17.2 rencies would not be sustainable. In this case, the worst places for environmental impact 72.3 Cape Verde 18.3 in mining are South American countries (Bolivia, Venezuela, and Suriname) and the Car- 71.7 Liechtenstein 22.2 ibbean (Cuba). Furthermore, on the African continent, Libya, Sudan, and Nigeria stand 71.1 Pakistan 28.5 out, and71i.n0 the Middle East, PakistanS,uadnadn Iraq. This list can be foun3d0i.3n Tables 5 and A4 in Appe7n0.d9ix A. Nigeria 31.2 70.7 Iraq 31.5 However, if we compare these results with Figure 3, which shows the average Source: Ownmeolanbtohrlaytiohnadsehrivraedtefrbomy tchoeunnetwrya,djwusetedcaEnPIsienedetxhantdcIrByMptSoPcSuSrSrteantisctyicsm27in. ing is not currently taking place in those countries that would be more sustainable. The hash rate refers to the numerical value within each cryptocurrency used by the proof-of-work. The value indi- On the contrasting side we would find those countries in which mining cryptocur- cates the number of computational operations that a miner (or the network of miners as a rencies would not be sustainable. In this case, the worst places for environmental impact whole) is capable of performing. All this in order to solve cryptographic puzzles derived in mining are South American countries (Bolivia, Venezuela, and Suriname) and the from the cryptographic function used by the cryptocurrency. So, the higher the hash rate, Caribbean (Cuba). Furthermore, on the African continent, Libya, Sudan, and Nigeria stand the more cryptocurrency mining is taking place in that geographic area.

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