Mining cryptocurrency can consume a lot of energy. Mining farms around the world use 0.13% (End of 2017) of the total global electricity consumption.
We think that’s pretty scary.
Raising funds to change the world isn’t much good if we destroy it in the process. That’s why Cudo Donate – are carbon neutral in everything they do. We achieve this by purchasing carbon credits, which offset our carbon use by supporting specific renewable energy projects. This way we ensure that any cryptocurrency you earn hasn’t cost the Earth.
How much energy does mining consume?
As an estimate, a single Bitcoin will use roughly 100 kWh to mine. Our software does not mine Bitcoin because it is not efficient with traditional hardware like laptops and PC’s.
However, energy consumption varies hugely across currencies, depending on the competition for the coin, scarcity and how complex the blockchain is.
Cost wise it is more efficient to mine cryptocurrency than it is gold.
What effect will this have on global energy consumption?
In regard to mining any cryptocurrency, the estimated impact on the globe varies hugely.
Where dedicated machines join the blockchain to build a ledger of every single Bitcoin transaction, the demand for increasingly powerful hardware rises and thus the energy consumption does too.
It’s almost impossible to know exactly how much, due to the constant flux of people and machines that choose to get involved (as well as the varying efficiency of those machines).
What are the environmental consequences?
It’s important to be mindful of the effect that mining could have on our planet, as the collective energy used for mining is significant.
We take the impact of crypto mining on the planet very seriously. That’s why we measure the energy used by our software and offset it with the equivalent number of carbon credits, so every penny you raise through mining cryptocurrency is carbon neutral.
How are these being solved?
Increasingly, mining farms are moving to countries where a higher proportion of the energy mix is renewable, and natural air temperature can be leveraged to keep servers cool, without expensive and wasteful air conditioning units.
We take personal accountability for the energy used by Cudo technology and ensure that it’s offset by a renewable counterpart. We consistently monitor our output and invest in an equal weight of carbon credits. These carbon credits are given to specific projects which actively help the environment, by developing renewable energy solutions such as windfarms. This allows us to maintain our 100% carbon neutral footprint.
Is mining ethical?
Mining is as ethical as the people who choose to use it. Even the most innocuous items can be used for criminal means. This applies to fiat currency, cryptocurrency and computers.
Even the first mass production cars were used by moonshine runners during prohibition. Industry estimations state the criminal use of traditional currency as substantially higher than that of cryptocurrency.
We believe cryptocurrency can – when harnessed for good causes – change the world.
Is there any future legislation that may jeopardise mining?
At present, and certainly in the UK and the EU, jurisdiction towards cryptocurrency has been quite open; however, governments are still trying to get to grips with what a decentralised currency means for trade and the banking system.
Unsurprisingly, most countries have made a ruling on the taxation of cryptocurrency so charities should familiarise themselves with their obligations.
As mining and the use of crypto increases in popularity the call for regulation will likely increase but there is no real way of knowing what that will look like – if it happens at all.