The current cryptocurrency crash has had far-reaching consequences for the tech market and has even had a substantial positive impact on the environment.
According to data reported by Digiconomistthe crash has significantly reduced CO2 emissions – 150,000 metric tons of CO2 per day are avoided through the reduction of crypto mining.
As Digiconomist states, “Total reductions over the past few weeks already amount to a quarter of annual CO2 reductions by Tesla vehicles.” We’ll see how much more emissions decline as the market continues to crash.
The crypto crash has a (so far) lasting impact on related CO2 emissions. Compared to before the crash, 150,000 tons of CO2 are avoided per day. The total reductions of the past few weeks already amount to a quarter of the annual CO2 reduction by Tesla vehicles. pic.twitter.com/BPiTu1d8WPJune 30, 2022
For context, this amount of carbon avoidance, according to Digiconomist’s analysis, is more than the total global net savings produced from the use of electronic vehicles, which the International Energy Agency reports. (opens in new tab) estimated at about 50 Mt in 2020.
Of course, this is just avoiding carbon emissions, meaning this represents carbon emissions that we don’t actively add to our total emissions output, not existing emissions that we somehow wiped out.
Analysis: the far-reaching effects of crypto mining
It is sobering to say the least to see how much carbon emissions have declined after the cryptocurrency crash. The crypto mining industry has a lasting negative impact on the world.
The far-reaching environmental damage of crypto mining is a well-documented fact, with several studies reporting the incredibly large amount of carbon emissions it releases as a result of the high energy consumption of mining via electronic devices.
Mining equipment based on ASIC technology also generates significant electronic waste, as their lifetimes average three to five years before needing to be replaced, and the used equipment cannot be reused for other uses by its very nature.
Another form of mining equipment comes in the form of GPUs, with the best graphics cards being highly sought after by miners, as we can see when Ethereum miners spend alone $15 billion on graphics cards in the past two years. Even the best cheap graphics cards from a few generations ago have become nearly impossible to buy during the crypto boom.
Many of these cards are now flooding the used market as miners try to recoup their losses, and there is no way of knowing what their remaining life might be or the conditions under which they were operating. So there’s really no way to tell if these used cards are a wise purchase unless miners are literally giving them away for free.