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The environmental effects of cryptocurrencies

Corbet, Shaen orcid logoORCID: 0000-0001-7430-7417 and Yarovaya, Larisa orcid logoORCID: 0000-0002-9638-2917 (2020) The environmental effects of cryptocurrencies. In: Corbet, Shaen orcid logoORCID: 0000-0001-7430-7417, Urquhart, Andrew orcid logoORCID: 0000-0001-8834-4243 and Yarovaya, Larisa orcid logoORCID: 0000-0002-9638-2917, (eds.) Cryptocurrency and Blockchain Technology. Walter de Gruyter, Berlin/Munich/Boston, pp. 148-194. ISBN 9783110660807

Abstract
This chapter discusses the environmental aspects of cryptocurrency markets and as to how their rapid growth can influence the environment and through which channels this process manifests. While it is not popular discussion among investors, we find that environmental issues can be of interest by wider society, students, policy makers and stakeholders of FinTech companies. Environmentalism has a long history, and controversy around this subject is remains quite substantial, thus to not make our discussion over-complicated, in this chapter we will focus on the area where to date, we possess the most thorough data and evidence through which we can build the case, namely electricity consumption associated with the mining of cryptocurrencies. The total carbon footprint of the industry is now estimated to have surpassed that of many large industrial nations. This chapter investigates the multiple knock-on effects and consequential behaviour of this rapid growth in energy usage, such as an increase in global temperature, the growth of mining companies who have targeted third world infrastructures, and the complete shutdown of the internet as we know it. Saying that, we encourage investors not to ignore these environmentalism matters, since we also show that electricity consumption is proven to be one of the commonly used variable in valuation of mineable cryptocurrencies and identification of their fair value, which affect investments returns and should be considered in their trading strategies.
Metadata
Item Type:Book Section
Refereed:Yes
Uncontrolled Keywords:Bitcoin; Cryptocurrencies; Volatility; Speculative Assets; Currencies; Energy Usage
Subjects:Business > Economics
DCU Faculties and Centres:DCU Faculties and Schools > DCU Business School
Publisher:Walter de Gruyter
Official URL:http://dx.doi.org/10.1515/9783110660807-009
Copyright Information:© 2020 Walter de Gruyter
Use License:This item is licensed under a Creative Commons Attribution-NonCommercial-Share Alike 3.0 License. View License
ID Code:25036
Deposited On:11 Dec 2020 14:49 by Thomas Murtagh . Last Modified 24 Aug 2021 03:30
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