T

opic- To study the societal perception on the harmful effects of Crypto

Mining on the environment.

Submitted By- Aryan Shrivastava

SAP ID- 81022019348
Roll No.- F007
Submitted To- Prof. Shweta Soman

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Table of Contents

Serial Number Content Page Number

1. Introduction 3

2. Research Methodology 3

3. Limitations of the study 4

4. Review of Literature 4

5. Analysis and Data 6

Interpretation
6. Findings 9

7. Conclusion 10

8. Suggestions 10

9. References/Webliography 11

10. Annexure 11

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Introduction-
Aim- The aim of the research paper is to study the societal perception on the harmful effects of
Crypto Mining on the environment. 
Abstract- Cryptocurrencies have come a long way from their relatively obscure origins. In
spite of the mainstream financial world's disdain for digital currencies as a tool for criminals
and speculators, the sector has made significant progress in establishing itself as a legitimate
and (potentially) world-changing industry.
It is no secret that Bitcoin (BTC) and ether (ETH) have seen massive growth in price and users,
but there are still doubts about the long-term consequences of a widespread adoption of
cryptocurrencies. Many skeptics and environmentalists have expressed concern about
cryptocurrency mining's energy consumption, which may lead to increased carbon emissions
and climate change. Because proof-of-work blockchains are competitive, they incur
astronomical energy costs. An incentive-driven, distributed network of miners records
cryptocurrency transactions, instead of storing account balances in a central database. The
computers are competing in a race to record new blocks, which can only be created by solving
cryptographic puzzles. Cryptocurrency proponents believe this system has many advantages
over centralized currencies due to the fact that it doesn't rely on a trusted intermediary or a
single point of failure. The puzzles for mining, however, require many energy-intensive
calculations.
The BBC reported in 2021 that Bitcoin, the most widely-known cryptocurrency network, uses
121 Terawatt-hours of electricity every year, more than the entire country of Argentina. The
Ethereum network consumes as much power as Qatar, according to Digiconomist, a
cryptocurrency analytics website.
With the rise in cryptocurrency prices, mining tends to become less efficient, which concerns
environmentalists. Bitcoin's block-creation puzzles become more difficult as the price goes up,
but its transaction throughput remains constant. To process the same number of transactions, the
network will consume more computational power and energy over time.
Key words- Crypto mining, Social Perception and Environmental Impact.

Research Methodology-
Research Gap- Not many researchers have studied the impact of Cryptocurrency
mining on the environment, its impact on fossil fuels and also the usage of energy.
Additional measures that are appropriate for the regulation of cryptocurrency mining are
also not studied in a thorough manner. Some of the research paper’s critical observations
are expected to provide impetus for future improvements in the research of crypto-
mining. 
Objectives of the study- 
1. To study the social perception of crypto-mining. 
2. To study the environmental impact of crypto-mining. 
3. To understand and analyze the future of crypto-mining. 
Hypothesis- 
H0-A - Majority of the social perception around cryptocurrency mining is negative. 
H1-A- Majority of the social perception around cryptocurrency mining is positive. 
Significance of the study- The topic around cryptocurrency mining and its social
perception has not been delved into by the researchers a lot. It was therefore important in these
times to understand the nitigrities of newer technologies and their impact on the overall

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environment.
Scope- The study will be focussed on the social perceptions of crypto-mining in the primary
research samples and on the actual impact in the secondary research, which will be studied
through online articles, blogs and research papers. 
Research Design- The research is Qualitative in nature. 
 Universe India

Sample Method Simple Random Sampling 

 Sample Size 65

Method of data collection Primary

Primary Questionnaire

Secondary Blogs, web journals and online articles

Data Analytics Pie charts, Graphs and Tables

Limitations of the study- 

Bias, Sample size, Time constraints, Opinion, Vague, Knowledge, Lack of reliable data. 
 
Review of Literature- 
Nathan Reiff (2021) states in his paper that Coal and other fossil fuels are currently a major
source of electricity worldwide, both for cryptocurrency mining operations and other industries.
However, burning coal is a significant contributor to climate change as a result of the carbon
dioxide that the process produces. CNBC reports that bitcoin mining emits about 35,95 million
tons of carbon dioxide each year, the same amount as New Zealand. Cryptocurrency supporters
have downplayed the energy consumption of cryptocurrencies, claiming that mining operations
are typically concentrated around areas with abundant renewable energy. According to a report
released in 2019 by CoinShares, a pro-cryptocurrency research firm, 74.1% of the electricity
powering the bitcoin network comes from renewable sources, making it "more renewable-
driven than almost any other large-scale industry in the world.".
 
Renee Cho (2020) writes that bitcoin's power consumption has grave implications for climate
change and the Paris Climate Accord since it is estimated that it contributes 22 to 22.9 million
metric tons of CO2 emissions each year. This is the equivalent to the CO2 emissions of 2.6 to
2.7 billion households over a year. Bitcoin could lead to global warming exceeding 2°C,
according to a study. One estimate estimated that bitcoin mining in China alone could generate
130 million metric tons of CO2 by 2024. The amount could grow even higher if more
renewable energy is not used because more mining is moving to the U.S. and other countries.

Christopher Bendiksen & Samuel Gibbons (2019) writes about the concerns due to crypto
mining- There are several concerns regarding the widespread adoption of cryptocurrencies as a
mode of financial transaction, despite the fact that more people across the globe are warming up
to the idea of cryptocurrencies. The argument against cryptocurrencies isn't just their lack of
centralised regulation, but their ability to adversely affect the environment as well. One example
would be Bitcoin, arguably the world's most popular cryptocurrency. Despite being hailed as a

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revolutionary tool, Bitcoin fell out of favor with one of its strongest supporters, Tesla's Elon
Musk, who cited the environmental impact of Bitcoin as the reason for opting for Dogecoin,
another popular currency.

Shubham Srivastav (2021) talks about mining crypto energy costs in India and explains that a
mining rig consumes a lot of power as it has several other components besides the core
computational hardware, for example, a cooling system. ASICs consume about 1500 watts of
energy per hour, or 1.5 hW. Electricity rates in India tend to be around Rs 7 per kW on average.

 In her essay, Erika Rasure (2021) discusses alternate coins and states that many
cryptocurrencies have negligible environmental consequences. Proof-of-stake blockchains, such
as EOS and Cardano, do not require mining, making transactions as energy-efficient as those
made on a computer network.
Although this model has clear advantages over mining, it is difficult for an established network
to move to a new consensus mechanism. The proposal to make Ethereum a proof-of-stake
blockchain has been disputed by miners, according to CoinDesk.
 
 

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Analysis and Data Interpretation.

Figure 1
Crypto currencies are a major vogue in the present day. The returns that it has shown given
and the technology that it uses has caught attention of everyone. Majority of the respondents
are Gen Z or millennials and that is the reason that the majority of the respondents own a
cryptocurrency. It is also important to point out that with the state-of-the-art crypto exchanges
we have in India and the cutting-edge technology they use, it is but obvious that any person
with certain fund would want to invest in the crypto space.

Figure 2
We can infer from this particular answer that majority of the respondents feel that the
cryptocurrency is bought with the purpose of various anonymous transactions that it can
facilitate. It is closely followed by speculation. With the current rise in cryptocurrency prices,
a lot of crypto billionaires have joined the mainstream and people want to emulate them. This
is the reason why a lot of people consider crypto currency as a speculative asset rather than a
store of value. 23.1% people have voted for the sole purpose because crypto currencies were

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brought in the first place i.e., Freedom from centralized financial institutions like banks and
the government.

Figure 3
From the above responses, we can infer that majority of the people see a future in
cryptocurrency and a major reason for that is the immense returns that it generates as a store
of value. However, these people want it to be regulated in some or the other to protect the
environment from the extreme dangers of crypto mining as it consumes humongous amount
of electricity and releases a lot of green house gases. 26.2% people say that they do not see
any future in it, 24.6% people feel that there is a future in it and it should be continued and
7.7% are not informed as per them.

Figure 4
From the answers it can be inferred that majority of the people do not agree with crypto
mining being essential for the society. 38.5% disagree with the statement and 21.5% strongly
disagree, it goes onto show that the public perception around crypto is that of a luxury instead
of necessity and an asset class. This actually proves the hypothesis of public perception being
against cryptocurrencies as true. 15.4% are neutral and only 18.5% agree with the rest
agreeing strongly.

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Figure 5
An overwhelming majority of the responses feel that crypto mining will eventually lead to a
severe climate emergency and only 15.4% of the people feel that it wont lead to a climate
collapse. This further puts a big tick mark on the hypothesis that the majority of the responses
are actually not in favour of crypto mining but feel that it may have certain positive impacts.

Figure 6
In the above question, the main objective of the researcher is to understand the objective
thinking of the respondents behind the future step that the government should take in order to
optimize the benefits of crypto and t protect the environment at the same time. 53.8% people
have voted for mildly regulated measure on the amount of crypto mined everyday so that the
environmental impact is controlled on a daily basis. 27.7% people want to put a sanction on
the crypto miners which will discourage the new people from mining and also help to share
the percentage of profits from the mining with the society. 15.4% are of the view that the

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crypto mining should be banned completely and 12.3% believe that the government should
have laissez faire approach on the miners with no regulation and pure competition.

Findings of the study-

There are several concerns regarding the widespread adoption of cryptocurrencies as a mode
of financial transaction, even though more and more people around the world are warming up
to the idea. The argument against cryptocurrencies is also their ability to adversely affect the
environment, in addition to their lack of centralized regulation. Let's consider Bitcoin as an
example. While Bitcoin was hailed as a revolutionary tool for transactions, one of its
strongest allies, Tesla founder Elon Musk, chose Dogecoin over Bitcoin because of its
environmental impact.
There are several concerns regarding the widespread adoption of cryptocurrencies as a mode
of financial transaction, even though more and more people around the world are warming up
to the idea. The argument against cryptocurrencies is also their ability to adversely affect the
environment, in addition to their lack of centralized regulation. Let's consider Bitcoin as an
example. While Bitcoin was hailed as a revolutionary tool for transactions, one of its
strongest allies, Tesla founder Elon Musk, chose Dogecoin over Bitcoin because of its
environmental impact.
How does it affect the environment?
Elon Musk said, "The energy consumption trend (over the past few months) is crazy." He
was referring to the amount of power required to create Bitcoins. During an energy-intensive
process, high-powered computers compete to solve complex mathematical puzzles in order to
mine cryptocurrency. Fossil fuels, in particular coal, are commonly used in this process.
According to Deutsche Bank analysts, Bitcoin would use about the same amount of
electricity a year as Ukraine if it were a country. Digiconomist found that Ethereum uses as
much power as Switzerland in a year. 
Additionally, these cryptocurrencies generate a lot of electrical waste and carbon footprint.
The carbon footprint of Bitcoin, according to another report by Digiconomist, is comparable
to that of Greece. Ethereum, meanwhile, is said to generate an annual carbon footprint
equivalent to Myanmar's.
As well as Bitcoin, Dogecoin, and Etherum, there are a bunch of alternatives that are more
energy-efficient.
One such cryptocurrency is Nano, which has the smallest energy footprint in the market.
According to inquirer.net, it is largely because it is not mined and uses low-energy processes
that leave fewer carbon footprints and enable lower transaction fees.
Another no-mining cryptocurrency network is Hedera Hashgraph, which has a lower
transaction fee as well as a lesser carbon footprint. Furthermore, it is quite popular, claiming
to process 1.5 million transactions a day on average in September 2020, almost double
Ethereum's daily transaction rate.
Also, Cardano (ADA) is an environmentally-friendly cryptocurrency. A single miner is used
for each transaction - randomly chosen. Coincidentally, it was created by Ethereum's co-
founder. 
For every use case Cardano uses 6GWh, Ethereum uses 50TWh, and Bitcoin uses 130TWh.

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Conclusion-
The first hypothesis was confirmed that majority of the respondents have negative opinion on
the crypto mining industry. However, in India the mining industry is very nascent as
compared to countries like China, Poland, Russia or the US, we should make sure that the
effect on the environment is contained in a large part. Isn't it possible that Bitcoin's bad
environmental impact could be resolved if the network supplying miners was powered by
renewable energy? No.
According to Stoll et al., even skimming renewable electricity can lead to shortages in grid
areas that are typically dominated by fossil fuel resources. al. (2019) suggests.
However, solar energy is not free - it comes with a price.
While "developing countries" gain access to more (and more stable) energy, we should
concentrate our collective efforts on reducing (and not just replacing) our energy bill. It also
means avoiding unnecessary energy expenditure, which is in line with how nature operates -
energy is sacred and seldom wasted unwisely.
Another question that comes to mind is whether or not Bitcoin's benefits outweigh its adverse
effects on the environment?
 A fierce debate around the environmental impacts of cryptocurrencies, like bitcoin, is
growing. Bitcoin does consume a lot of energy. That energy use is growing and annually
consumes as much energy as whole nations, such as Finland, Malaysia, or Sweden. While
bitcoin is not the only industry to consume as much energy as entire countries, e.g. concrete
consumes more energy than India, the energy both sectors consume comes with associated
pollution, including carbon emissions.
Even transactions with bitcoin use a lot of energy, with the average transaction consuming
over 1,700 kWh of electricity, which is almost twice the monthly amount used by the average
U.S. home. However, there was ways to transact in bitcoin using much less energy.
Exacerbating this problem, some bitcoin mining operations have teamed up with struggling
fossil fuel power plants, keeping some power plants online that would otherwise have retired,
increasing overall carbon emissions. Some utilities have even gotten into the bitcoin game
directly. 
Large bitcoin mining operations are also moving locations as China, the country previously
with the largest bitcoin mining industry, recently banned both cryptocurrency mining and
transactions. This change has bitcoin mining operations moving to places like Texas and
potentially Alberta, Canada.  As we move forward our pursuit of newer technologies should
not lag behind and we should protect our mother nature at the same time.

Suggestions-
The researcher has the following suggestions for the government of the day-
1. To tax the Mining of crypto currencies in the geography of India.
2. Make Crypto investors declare their investments in cryptocurrencies.
3. Urge crypto miners to install solar panels in their homes to produce electricity for
mining.
4. Make crypto currency legal or else it will be impossible to track the miners.
5. Urge more and more miners to use eco-friendly computers to reduce the carbon
footprint.
6. Create awareness regarding crypto currencies in the general public.

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References/Webliography-
1. Christopher Bendiksen & Samuel Gibbons (2019), Bitcoins Impact on the Climate and
Environment.
https://news.climate.columbia.edu/2021/09/20/bitcoins-impacts-on-climate-and-the-
environment/
2. Erika Rasure (2021), Bitcoin Mining in India a Profitable Venture.
https://www.cnbctv18.com/cryptocurrency/bitcoin-mining-in-india-a-profitable-
venture-9672401.htm
3. Nathan Reiff (2021), Is Bitcoin Inherently bad for the Environment
https://www.forbes.com/sites/joshuarhodes/2021/10/08/is-bitcoin-inherently-bad-for-
the-environment/?sh=49a3b8623033
4. Renee Cho (2020), What is the environmental impact of Cryptocurrency
https://www.investopedia.com/tech/whats-environmental-impact-cryptocurrency/
5. Shubham Srivastav (2021), How does bitcoin mining affect the environment
https://www.livemint.com/market/cryptocurrency/how-does-bitcoin-mining-impact-
the-environment-11620898893877.html

Annexure

Q1. What is your age?

7.70%

21.50%

29.20%

41.50%

<18 18-28 29-38 >38

Figure 7

Figure 8

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Figure 9

Q4. Monthly Household Income

12.30%

46.20%

41.50%

<40000 40000-100000 >100000

Figure 10

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Plagiarism Report
Percentage of Plagiarism – 9%

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