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Is crypto currency really that bad for the environment in comparison to fiat?

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by COINS NEWS 29 Views

Full transparency I am not educated enough on the topic but when you dwell on everything that fiat currency requires to be manufactures and sustained, is it really a big environmental difference?

I obviously used chatGPT to consolidate my thoughts but looking for insight.

  1. Resource Extraction: Many materials used in currency production, such as paper and metals (like nickel, copper, and zinc), require mining operations. Mining can lead to habitat destruction, soil erosion, water pollution, and biodiversity loss. Additionally, the energy-intensive nature of mining contributes to greenhouse gas emissions.
  2. Manufacturing: The process of manufacturing currency involves energy-intensive processes such as printing, engraving, and minting. These processes often require significant amounts of electricity and water, contributing to carbon emissions and water usage. Chemicals used in the printing and engraving processes can also pose environmental risks if not properly managed.
  3. Transportation: Raw materials, equipment, and finished currency products need to be transported between various locations, including mines, production facilities, central banks, and commercial banks. Transportation emissions from vehicles, ships, and planes contribute to air pollution and greenhouse gas emissions. This includes the transportation costs of the individuals doing these processes.
  4. Maintenance: Currency circulation requires ongoing maintenance of infrastructure, including bank branches, ATMs, and currency processing facilities. This maintenance involves energy consumption for heating, cooling, lighting, and other operational needs. Additionally, the disposal of worn-out or damaged currency notes and coins can pose environmental challenges if not managed properly.
  5. Waste Generation: Currency production generates waste materials such as paper scraps, metal shavings, and chemicals used in the manufacturing process. Proper waste management practices are essential to minimize environmental impacts and prevent pollution of landfills, waterways, and ecosystems.
  6. Energy Consumption: The entire lifecycle of fiat currency, from resource extraction to circulation and disposal, consumes significant amounts of energy. Much of this energy comes from fossil fuels, contributing to climate change and air pollution.
  7. Water Usage: Currency production, particularly paper currency, requires substantial amounts of water for pulp processing and printing. Water consumption can strain local water supplies and ecosystems, especially in regions already facing water scarcity or pollution challenges.
submitted by /u/scrawnjohn
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