Cryptocurrency has long had a dirty secret: the energy needed for bitcoin mining.
Crypto evangelists – who believe a decentralised financial system is for the greater good – tend to ignore this inconvenient truth. In May, however, when Tesla boss Elon Musk decried the environmental effects of the mining that goes into validating bitcoin transactions, the energy issue became a burning topic.
It’s a big problem for cryptocurrencies because the majority of investors (77%) are aged under 45, according to a study published earlier this year by Gemini Exchange. These consumers are also more eco-conscious than older generations. Indeed, Musk’s damning assessment arrived at the same time that a Pew Research Center study found that 37% of Gen Z and 33% of millennials in the US cite climate change as their top personal concern.