Pattern Matching
The True Cost of Bitcoin and NFTs
Blockchain takes a substantial toll on the environment that experts are beginning to reckon with
The price of one bitcoin, as I write this, is $57,383 — more than 10 times what it cost just a year ago. That price is volatile, so it will be different by the time you read this. But rest assured it will remain expensive.
There’s another toll, though, for every bitcoin created: the toll it takes on the environment. It’s one that is not paid in full by either the miner or the buyer. As bitcoin reaches new heights, fueled by advocates such as Elon Musk and Jack Dorsey, it’s a cost that’s becoming impossible to ignore.
The Pattern
Crypto faces a climate reckoning.
Whether or not you agree with the Citi analyst who recently predicted it will become the “currency of choice for international trade,” or the Square CFO who believes it has the potential to be “the native currency of the internet,” it’s safe to say that cryptocurrency is here to stay.
Meanwhile, after years of crypto enthusiasts insisting that the blockchain will disrupt everything, it’s finally starting to disrupt at least something other than financial regulation. NFTs, or…
