Bitcoin. Digital gold. Decentralized finance. This is the same mantra we’ve been told for decades. What if the shiny, glitzy promise of crypto has a much smokier underbelly? That reality is likely doing permanent damage by polluting our air and shortening our lives. It’s past time to address the unintended consequences of this digital revolution.

Bitcoin's Footprint Beyond the Blockchain

Let’s face it, none of us conjure up images of smokestacks when we think about Bitcoin. We picture hot lines of code, unhackable transactions, and at least one or two lambo emojis. A recent study in Nature Communications pulls back the curtain, revealing a less glamorous side: the significant impact of Bitcoin mining on air quality, specifically the increase of dangerous PM2.5 particles.

PM2.5. Those figures may seem lofty, but that is the second most common pollutant in our drinking water. These microscopic pollutants have been associated with a near dystopian list of health effects, including heart disease, cancer and even dementia. And as it turns out, according to this recent study, Bitcoin mining is playing a significant role in their spread.

It used a sample of 34 of the largest Bitcoin mines operating in the U.S. between August 2022 and July 2023. Taken together, these results paint a deeply disturbing picture. These mines consumed an incredible 3.4 times the electricity of all American homes combined. In fact, they guzzled 33% more gas than all of Los Angeles—in those months combined. And the kicker? The overwhelming majority of that power was produced by burning fossil fuels. Think about that for a second. This forward-looking technology is mostly fueled by the same thing we are all trying to shift away from.

Climate-related harm The national air pollution study estimates that more than 1.9 million Americans were exposed to unhealthy levels of PM 2.5 as a result of Bitcoin mining. That’s 1.9 million people who live and work at potentially increased risk of serious health problems. What do we do when costs go up because of preventable illnesses caused by this pollution? Who foots the bill? These are the strategic questions we should all be asking.

Domino Effect Pollution Across State Lines

Pace chalks that phenomenon up to a “domino effect.” A Bitcoin mine in one state relies on fossil fuel power plants in a second state, which creates pollution in a third state. It’s the proverbial Rube Goldberg device of ecological harm.

Take Metropolis, Illinois, for example. Pollution on the other end is traced back to a Kentucky coal-fired power plant that’s currently feeding a Bitcoin mine operation in North Carolina. How are states to enforce regulations on something that so flippantly tramples state lines? This is the type of issue that requires a smart, federal response to the nation’s needs.

I'm reminded of classic science fiction, like Blade Runner or Soylent Green, where technological advancements come at a steep environmental and societal cost. We’re not eating Soylent Green just yet folks! The Bitcoin mining conundrum reminds us to not be quick to accept innovation without thinking through what that might mean.

A Call for Pragmatic, Not Panicked, Solutions

Now, before you start selling off your crypto holdings in a fit of eco-anxiety, let's be clear: this isn't about demonizing Bitcoin or stifling innovation. It's about responsible risk management. We need to find a way to harness the potential of blockchain technology without sacrificing our air quality and public health.

What could those solutions look like? Scott Delaney, one of the study's authors, suggests the EPA could require upwind states to enact stricter emissions controls on power plants. He suggests encouraging the responsible siting of Bitcoin mines to mitigate their negative health effects.

These recommendations are extremely logical. In order to work, they require the good faith to abide by regulation. This is often difficult in the deeply libertarian undercurrents of cryptocurrency. Shouldn’t it be a question of freedom that all Americans should be able to breathe clean air?

Maybe a new carbon tax on BTC miners might push miners to accelerate the search for renewable energy. Or perhaps we just need stricter environmental regulations that directly target the energy-intensive processes that come with cryptocurrency. The appropriate answer isn’t more heavy-handed regulation, but a smarter, more balanced regulatory approach that fosters innovation while still protecting public health.

I, for one, enjoy a good scenery painting too. What’s the value of art if we’re too ill to enjoy it? The worst thing though, is to know that even the most beautiful places can be suffocated by coal pollution. It’s time to recognize the air pollution problem posed by bitcoin mining, and time to do so quickly before it’s too late. It’s past due for some honest, pragmatic accounting of the dangers and a pledge to work toward positive solutions that work for all constituents.