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Bitcoin

Monetary Value Estimates of the Air Pollution and Human Health Impacts of Cryptocurrency Mining (sciencedirect.com) 71

Andrew L.Goodkind, Benjamin A. Jones, and Robert P. Berrens, writing in a paper: Cryptocurrency mining uses significant amounts of energy as part of the proof-of-work time-stamping scheme to add new blocks to the chain. Expanding upon previously calculated energy use patterns for mining four prominent cryptocurrencies (Bitcoin, Ethereum, Litecoin, and Monero), we estimate the per coin economic damages of air pollution emissions and associated human mortality and climate impacts of mining these cryptocurrencies in the US and China. Results indicate that in 2018, each $1 of Bitcoin value created was responsible for $0.49 in health and climate damages in the US and $0.37 in China. The similar value in China relative to the US occurs despite the extremely large disparity between the value of a statistical life estimate for the US relative to that of China. Further, with each cryptocurrency, the rising electricity requirements to produce a single coin can lead to an almost inevitable cliff of negative net social benefits, absent perpetual price increases. For example, in December 2018, our results illustrate a case (for Bitcoin) where the health and climate change "cryptodamages" roughly match each $1 of coin value created. We close with discussion of policy implications.
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Monetary Value Estimates of the Air Pollution and Human Health Impacts of Cryptocurrency Mining

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  • Did they take into account the heat output of all those specialized mining cards? How about your infected phone burning your hand off as it bitcoin mines for whatever hacker infected you with malware?

  • by Anonymous Coward

    I wonder what the footprint of the credit card/banking system is? I'm not really a fan of bitcoin, mainly it's pump and dump hucksterism, but if you add up all the compute, paper, plastic, human effort, etc.. consumed by the banking system I bet it's vastly, enormously higher.

    Actually if you look at how it's enabled consumerism, modern payment processing is effectively the root of all our ills in terms of the environment. We'd probably have a pretty sweet planet if you had to swap gold coins with people for

    • Re: I wonder... (Score:4, Interesting)

      by Way Smarter Than You ( 6157664 ) on Monday October 07, 2019 @03:36PM (#59280548)
      Except the credit card system has value and purpose and by reducing the friction of commerce, creates more commerce, which raises everyone's standard of living and makes for a rich society with free time for the arts, sciences, and so on. Or we could go back to trading pretty rocks for sacks of grain at the end of each harvest and dying young after living brutal hard lives. Whereas crypto provides nothing of value.
      • Crypto is the ultimate reduction of friction in all commerce and ALL financial transactions. Need to move 10k to your uncle in Algeria? done in half a second, where your credit based bank will take at least a week at it.
        • Re: I wonder... (Score:4, Interesting)

          by Rockoon ( 1252108 ) on Monday October 07, 2019 @03:58PM (#59280658)

          Crypto is the ultimate reduction of friction

          Rate limits are friction

          Need to move 10k to your uncle in Algeria? done in half a second

          The rate limits preclude your "half a second" nonsense. Its almost like you are lying instead of just being wholly ignorant of crypto. The reason its almost like you are lying is because you came here acting liker the expert making absolute claims that are trivially false.

          So here is my advice... stop being a dishonest fuck. Either you are knowingly dishonestly pretending to be knowledgeable, or you are knowingly saying untrue things with the intent to mislead. Stop being a dishonest fuck.

          • What rate limits are you referring to? Are you talking about the rate blocks that are solved? If so then yes sending your uncle in Algeria $10k will take take 10 minutes if your uncle can assume his nephew is not trying to double spend on him. It will probably take your uncle an hour to transfer that money to someone else that presumably does not trust him.

            That's assuming you are transferring money via transactions. If you've got a wallet with $10K already in it, you can email that to your uncle in half

            • Re: I wonder... (Score:5, Insightful)

              by Khyber ( 864651 ) <techkitsune@gmail.com> on Monday October 07, 2019 @06:30PM (#59281252) Homepage Journal

              10 minutes for a new type of transaction system versus nearly instantaneous with transaction systems that date back to the 70s.

              That's pretty fucking shitty if you ask me. All this modernity, and yet the old system has a transaction time THREE ORDERS OF MAGNITUDE lower than the new system.

              If I need to wait ten fucking minutes for my transaction to clear before they begin making my cheeseburger, I'm just going to cancel the transaction, get real cash, and pay that way - instantly.

              Oh, and just Shitcoin alone negated all progress made by all solar ever installed on the planet over the past 40 years, and did that in less than five.

              Craptocurrency is literal shit. Bad for economies, bad for the environment, bad for consumers. It is plain and simple BAD.

              • Bitcoin is not a payment system. The payment layer of Bitcoin is Lightning, and Lightning is instantaneous. Bitcoin transactions are final settlement; like central Banks final settlement. You can use an easy money and wait for the debasement. Now, a modern ultra hard monetary asset is available, you are free to use it, or not. Your choice.
                • by Khyber ( 864651 )

                  Lightning is a protocol ripe for abuse. My money literally comes out of the earth itself on my weekly mining excursions into the Mojave. It literally cannot get any 'ultra hard' than that. My monetary assets are literally hard enough to be used to bash your shitty machines to death, and varied enough to withstand pretty much any economic downturn. And people will still barter for pretty rocks. I've done it out in the desert for a bottle of vodka just to avoid spending cash meant for gas!

                  Got someone in the d

                  • Got someone in the desert that'll barter you bitcoin for a bottle? I thought so.

                    Actually I would "trust" any cryptocurrency more than I would you. You could be giving me something nice looking but worthless. Crypto I could validate on the spot. Sure for a bottle of vodka the risk is fine. But for anything of real value representing significant financial risk validating the value of your pretty rocks becomes a lot more of a hassle than most any cryptocurrency.

              • The 10 minute block time was an intentional part of the design. It's not like they tried to make it shorter but couldn't design it well enough. Like I said, there are other cryptocurrencies with shorter block times that are probably better for buying cheeseburgers.

                Also, the restaurant doesn't actually need to wait until the payment clears before starting to make the cheeseburger. Plenty of restaurants make your food before you pay.

                Also, the point of cryptocurrencies is not to just be a competitor to cred

      • Had you said digital payment systems, I would have agreed more.

        But a system that exists solely to get people into debt by overspending, making up imaginary money, and and leeching off of people without working, isn't exactly the be-all end-all of trade.
        More like a ball of cancer that is also a leech, around your neck.

        • by Xenx ( 2211586 )
          Had you said credit cards, I would have agreed more.

          The credit card system is used for more than credit cards. Most debit cards are affiliated with one of the major credit card companies and able to be processed through the credit card systems.
      • Do you ever wonder if there might be some aspects of complex system, not all but some, that are wasteful? And that there might be some middle ground between reconsidering how those aspects can be implemented and throwing out the entire associated system and going back to living in the trees?
        • Re: I wonder... (Score:4, Informative)

          by GameboyRMH ( 1153867 ) <gameboyrmh@@@gmail...com> on Monday October 07, 2019 @06:07PM (#59281142) Journal

          It's hard to imagine anything more wasteful than a Bitcoin-style blockchain that requires mass hash reversal to add the next block, other than perhaps the same thing with longer/more expensive hashes. Remember that whole power plants have been brought online to power this bullshit. One cryptocurrency mining operation probably uses more power than one of the major credit cards' entire IT infrastructure.

          • Before the 20th century; Sound money with the Gold standard was the reference. Now Bitcoin is new modern sound money, and you are free to use it or ignore it.
    • I'd bet that it's nowhere near as much per-dollar-transaction, since there's no requirement to brute-force a metric fuckton of hashes for a hilariously wasteful blockchain - just shift some values in a database to complete a transaction, and I wouldn't be surprised if it were even less overall.

      Remember than in Australia a shuttered coal power plant was brought back online to power a cryptocurrency mining operation...and there were and still are many others like it around the world, guzzling electricity and

    • by Khyber ( 864651 )

      The entirety of the banking and transaction system (ignoring stock market) pales in comparison to what bitcoin alone uses. Bitcoin alone has negated every bit of progress made by solar power over 40 years, and did it in less than half a decade. The entire banking system is nowhere close because they use more efficient databases and servers, and can process far more transactions per second than Shitcoin.

  • You mean burning vast amounts of electricity to generate a token which is effectively nothing of value and them pretend it is a value store isn't good for the environment? I am well and truly shocked
  • Environmentalists: purchase bitcoin and drive up the price, if you can double the $/btc then lives-ruined per $ will be halved.
  • Is there anything you won't reduce to a dollar value?

    • Yes: dollars.

    • Do you have a better system of valuation that can be used, or were you just trying to be pithy? And I'm being serious about this. How do you expect to make meaningful decisions or understand the ramifications of those decisions without some quantitative system with which to evaluate those choices? Dollars are well understood and already captures the economic output of a country quite well. Once your solution starts to require more than a trivial percentage of economic output to be diverted in order to achie
    • Money is just a representation of productivity. And everything you eat, drink, wear, live in, use to get around, use, can do in your free time, etc. is based on productivity. Productivity per capita is just another way of measuring standard of living. So while the ratio between money and productivity is not constant in the long-term, if you're at all concerned about standard of living, the bottom line does in fact resolve down to a dollar value.
  • by Artem S. Tashkinov ( 764309 ) on Monday October 07, 2019 @03:59PM (#59280660) Homepage

    From the paper:

    Mortality per million mined coins

    Bitcoin 2018: USA: ~115

    Now, in 2018 around 657 thousand of bitcoins were mined which ostensibly could cause 115*0,657 ~ 75 freaking deaths for the entire population of the US. Now, traffic accidents alone took the lives of almost 37 thousand people for the same year. A year earlier 40 thousand people died just from gun-shots.

    I do understand that banks/payment systems do everything they can to discredit crypto-currencies but this "research" is kinda over the top.

    There dozens of other dubious activities people are engaged in which consume dozens of times more energy than for all crypto-currencies mining combined. It would be great if /. could post less news-stories like this one.

    • It always saddens me when someone says "this dumbass thing is ok because it only killed 75 people while driving killed 37,000 (or whatever large number) last year". I can have a great life without bitcoins. Without my car my entire life would be turned upside down and likely not be possible at all. Car deaths -are- bad but they in -no way- excuse deaths for stupid shit like bitcoin or anything else useless. Apples to dog shit.
    • by AmiMoJo ( 196126 )

      Now, in 2018 around 657 thousand of bitcoins were mined which ostensibly could cause 115*0,657 ~ 75 freaking deaths for the entire population of the US. Now, traffic accidents alone took the lives of almost 37 thousand people for the same year. A year earlier 40 thousand people died just from gun-shots.

      Try that one in court. "Yes, my client did murder the victim, but come on, 37 thousand people a year die in traffic accidents! What difference does one more life make? He may have stabbed the victim several times, but 40,000 OTHER people died from gun shots just this year! Why don't you do something about those deaths, members of the jury, instead of hand wringing over my client's insignificant little homicide??"

    • A year earlier 40 thousand people died just from gun-shots.

      False equivalency. Bitcoin's effect isn't only on deaths. It also nicely consumes more power than the entire country of Austria at a time when energy consumption is something people should start caring about.

      Though I agree guns bring nothing of value and their deaths are an everlasting documentation of national stupidity, bitcoin raises that to the global level.

  • The world could definitively prove that 100 puppies are killed for every dollar of crypto mined and the people who use it wouldn't care at all. They're too busy falsely believing that their pretend money is somehow sticking it to the man, so any heinous damages they cause is totally worth it, the rest of us be damned.
  • We should be using onshore windmills, hydroelectric dams, and nuclear fission power plants for our electricity. Do that and our electricity supply would be reliable, inexpensive, low in CO2, low in pollution, safe, plentiful, and use little land and natural resources.

    Stop complaining about the problem and BUILD THINGS to solve it.

    BUILD THINGS!

    This isn't that hard, except the treehuggers don't want cheap and plentiful energy. They will admit this in rare moments of honesty. They don't want cheap and plent

  • Not a single gallon of water was pumped, not a single foot of crop was harvested, not a single person was saved.
  • The paper is remarkably coy on average or median values, so the numbers I'll cite are only ballpark estimates.

    It appears that the external costs they estimate are about 3c/kwh for climate and 2c/kwh for health, totalling about 5c/kwh, based upon the median colors of the graphs of Figure 1. Electricity rates in the US range from about lowest of 7c, typical about 10c, California 19c, Hawaii 30c -> lets use a typical value of 10c/kwh. If the external costs are about 50% of the bitcoin value, that means tha

  • So far, two usages are quite obvious: money laundering and speculation. While there is no obvious proof that the former is happening - although it would be surprising if it is not - the latter is obviously happening, bearing mind the significant lack of stability so far endemic to all of the cryptocurrencies of any relevance.

    What else are they being used for?

    • by Xenx ( 2211586 )
      I see it periodically as a payment option. I have a terrible memory, and didn't care much about it, so I couldn't tell you which sites specifically. But, they were legitimate sites where you purchase physical goods.
    • by GameboyRMH ( 1153867 ) <gameboyrmh@@@gmail...com> on Monday October 07, 2019 @06:38PM (#59281290) Journal

      Direct use in criminal finance (payments for ransomware, child porn and other illegal goods), not quite the same thing as money laundering since they might not be possible at all without cryptocurrency. Also currency control evasion (Venezuela, Argentina) and tax evasion.

      Also some tiny amount of positive uses: Smuggling money to activists in repressive countries and to women caught in abusive relationships.

  • I'm thinking a customs duty on all oil and coal shipments to and from the respective countries, and if they don't pay, we sink the ships, safely storing the fossil fuels.

    It's the only sane bitcoin solution.

    • Just tax bitcoin transactions for their environmental impact. It's easy to track, so it will be easy to assess.

      • Fiat currency users can be easily taxed using massive debasement. e.g. bolivar. A fantastic tool for massive wealth transfer.
        • Yes, perhaps the best way to implement taxation would be to institute UBI tied to inflation, and then just print money to pay for it. That taxes all people sitting on USD anywhere in the world, whether they earned the money legally or not, while shielding the citizenry from the negative effects (loss of buying power.) It also encourages rapid spending, which stimulates the economy.

          So far nobody has come up with a good argument against this idea. The best argument has been that it makes it harder to borrow m

          • Bitcoin is the opposite of fiat money; Bitcoin is the separation of Money and State; Definitively a project to preserve wealth for the general population. Bitcoin is uncensorship money transfer too, you can't tax it without consent.Bitcoin is a way to be preserved of any 'Taxation without representation'.
            • Bitcoin is uncensorship money transfer too, you can't tax it without consent.Bitcoin is a way to be preserved of any 'Taxation without representation'.

              Okay, btcwarriorhodlgang, tell us all about how a trivially traceable currency helps protect you against taxation.

              • Bitcoin is cross-border; and pseudo-anonymous, you can preserve your privacy if you want.
                • Bitcoin is cross-border;

                  Is there a currency that bursts into flames when you attempt to take it across a border?

                  and pseudo-anonymous, you can preserve your privacy if you want.

                  You can psuedo-preserve it, you mean.

                  • A new asset, with new properties. And people are interested for different reasons.
                    • A new asset, with new properties. And people are interested for different reasons.

                      I'm not a person that says that BTC is useless, although it is evil since it's based on proof-of-work and involves wasting CPU cycles, which has environmental impact. I simply understand that it does not preserve or provide anonymity, and therefore people who promote it are jackholes on every level.

                    • Energy is the base of modern society. A car will use more energy than a horse, a car is far safer. It is far easier to fund useless stuffs with the money we have today, a money that depreciates over time, than with a hard monetary system like was the Gold Standard. This is the notion of time preference.
  • Unsound money, and easy money, is the certainty of malinvestment. Bitcoin fixes this.
  • How much harm in USD is burning $1 of gasoline in your car? or buying $1 of beef? I'm guessing it's probably something similar. The cost to mine bitcoin roughly follows mirrors it's current value. Really what I take from this is that the price of energy is not taking into account the negative externalities of pollution and climate change. If energy was 50% more expensive (e.g. through a carbon tax), and that extra $0.50 on the $1 is be used to counteract the negative effects, you could mine bitcoin carbo
  • I have visited the ruins of a fertilizer plant in Great Falls, South Carolina. It was built in the early 1900s at the same time that the falls were dammed and a hydroelectric facility built. Without the fertilizer plant that made use of cheap electricity to produce fertilizer the dam might never have been built, because there was no pre-existing market for electricity in the area and therefore no customers to pay for its construction - and of course without the dam the fertilizer plant could not have been b

  • So you've got companies and governments choosing to use polluting methods to make electricity and then you have the people buying the electricity who had nothing to do with choosing how it's produced. Whose fault is it REALLY again?
  • Bitcoin is an efficient allocation of resources, the problem is that the energy used to produce it does not include the externalities of its production.

    Tax carbon correctly, and the market will price energy correctly, and therefore will not pass on its externalities to bitcoin.

    Using untaxed carbon sources to power your heater for your home produce the same (dollar for dollar) social costs.

    This is nothing to do with any problem of bitcoin, but the market will simply take advantage of these distortions.

"The vast majority of successful major crimes against property are perpetrated by individuals abusing positions of trust." -- Lawrence Dalzell

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