Q&A: Is Bitcoin Bad for the Environment?
I'm thinking about investing in bitcoin. But my sister told me that crypto is bad for the environment. Is that true. But i thought crypto is digital. So how is that possible. I know right. Crypto currency is entirely digital currency. So if it doesn't exist in the physical world how could it be affecting the fiscal world. It's a concept that can totally make your head spin but we have to study ourselves because it's one hundred percent true cryptocurrency is digital. I'm not gonna rock your world and tell you that there is a pot of dougie does coin at the end of the rainbow. The only way you're going to be holding dougie gone in your hands is if you come over to meet my dog coin penny and you can follow her at dougy cohen on instagram. Halfway so even though the currency isn't physical it is made by physical systems. And that's where the environmental impact comes in. Let's double click on bitcoin for a second because it's one of the least efficient cryptocurrencies to manufacture. And it's also been researched. The most thoroughly so there is belenky of data on the effects of its production process and here on money rehab. We do let us some data. So let's talk about how. Bitcoin is made we touched on this in our episode on. Nf teas but i think we're due for a refresher. Bitcoin is created in a process called bitcoin mining. But i promise you. The process of bitcoin mining is not what you might think of when you picture traditional mining when you think of mining you're probably thinking of well a mine with hard hats and caves and canaries but bitcoin mining doesn't happen in a mine. It happens on a computer and this is the interesting part of bitcoin. Anyone can mine. Bitcoin and you can do it from anywhere in the world so long as you have access to a computer that makes bitcoin completely different from government backed currencies like the. Us dollar. nick sherry. Note here if you want to impress your friends. The financial term for government backed currencies is fiat currencies. Okay back to bitcoin mining. Can you imagine if anyone could print dollar bills. Only that but imagine that you could just print dollar bills and do it at home. Without getting out of your. Pj's if this was a thing. I would do it. I wouldn't you so. Why isn't everyone making mining bitcoin.