As we embrace the facts of an ever-evolving world, a broader view of sustainability emerges. Consequently, every sector of the economy must recognize its role in maintaining a delicate stability for the environment and society. One such sector is the cryptocurrency industry, and its prominence isn’t expected to fade anytime soon.
Bitcoin is a central player in this industry, with its history dating back more than a decade. The peer-to-peer currency system has significantly disrupted the financial world, leading to the emergence of several other cryptocurrencies. Bitcoin has also led to the establishment of several industries — one being the online gambling industry.
Over recent years, Bitcoin gambling has surfaced as an enticing, novel area of Internet gaming. Its appeal is largely due to its convenience, transparency, high speed, and minimal transaction fees. Bitcoin gambling platforms could even set the scene for the future of online gambling, if the juggernauts continue to roll.
However, a pertinent issue intersects these two thriving sectors – sustainability in Bitcoin mining. In other words, the environmental impact of this crucial process. This is a crucial concern for Bitcoin gambling platforms because how they source their primary currency could dramatically affect their future.
## Bitcoin Mining & Its Environmental Implication
The concept of Bitcoin mining is complex, though central to its operation. Essentially, mining refers to the process of verifying Bitcoin transactions, adding them to the blockchain and releasing new bitcoins. The process requires robust computing powers, such as those found in specialized hardware.
Due to this, Bitcoin mining has taken a considerable environmental toll. According to the Cambridge Centre for Alternative Finance, energy consumption for Bitcoin mining globally surpasses consumption levels of entire countries such as Argentina and the Netherlands [1].
Bitcoin mining’s environmental impact has raised concerns amongst environmentalists, governments, and even enthusiasts within the cryptocurrency market. It leaves the economic future of Bitcoin in a delicate position.
## Implications For the Gambling Industry
Sustainability matters because the environment bears the impact of all activities in the Bitcoin network – including Bitcoin gambling. For gambling platforms, the issue of sustainability in Bitcoin mining extends beyond just environmental concerns. It has implications on their financial stability, compliance, and reputation.
Firstly, the rise in global awareness surrounding the unsustainable aspects of Bitcoin mining has led to increasing regulations. For instance, in China, where approximately 65% of the world’s Bitcoin mining takes place, the Government is gradually cracking down on the practice due to environmental concerns [2]. As such regulations continue to emerge, this could increase transaction fees on the Bitcoin network to compensate for their loss in China, potentially making Bitcoin gambling services less affordable.
The reputation of Bitcoin as a sustainable currency choice could also tarnish under the weight of public scrutiny, causing players and investors to take their business elsewhere.
As a result, bitcoin gambling platforms have begun to explore alternatives. Some have diversified their cryptocurrency holdings, while others are turning to more environment-friendly cryptocurrencies. Further still, some platforms are investing in green energy infrastructure for Bitcoin mining or actively offsetting their carbon footprint.
The path to sustainable Bitcoin mining is not yet transparent and easy. However, it’s a challenge that must be met head-on for the continued success of Bitcoin gambling and the broader cryptocurrency industry.
In conclusion, sustainability in Bitcoin mining is neither an issue that can be written off as unimportant nor an insurmountable hurdle. With innovation and commitment to sustainability, Bitcoin and the gambling industry can step toward a more sustainable, green future, preserving the environment whilst still providing a secure, convenient platform for users worldwide.
It remains crucial for everyone within the Bitcoin network – miners, users, and stakeholders alike – to stay informed about the progress being made toward sustainability and do what we can to encourage sustainability in Bitcoin mining.
Sources:
[1]. Cambridge Centre for Alternative Finance. (2021). Cambridge Bitcoin Electricity Consumption Index (CBECI). https://cbeci.org/
[2]. Huang, E. (2021). China says it will crack down on cryptocurrency mining and trading activities. CNBC. https://www.cnbc.com/2021/05/21/china-crackdown-on-cryptocurrency-mining-and-trading-activities.html.
