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Posted on Jun 12, 2024

I need you to answer my peer's discussion post in a detailed manner with sources/references/citations, please. State if you agree or disagree. Answer each post

I need you to answer my peer's discussion post in a detailed manner with sources/references/citations, please. State if you agree or disagree. Answer each post separately.

Post 1

Hello Everyone,

Under the pseudonym Satoshi Nakamoto, an unidentified individual or group of individuals established the decentralized digital money known as Bitcoin in 2009. Peer-to-peer network operation allows users to deal directly without the involvement of middlemen like banks. Network nodes use cryptography to verify transactions, which are then stored in a publicly distributed ledger known as a blockchain (United Nations University, 2023). For both individuals and corporations, Bitcoin has different significances. Lower transaction costs, quicker international payments, and enhanced security are just a few advantages that Bitcoin can provide for companies. To increase their clientele, some companies now take Bitcoin as payment. People can see Bitcoin as a way to achieve financial independence, as an investment opportunity, or as a hedge against inflation.

However, there are worries about how Bitcoin will affect the environment. According to a study by United Nations University, mining Bitcoin uses a lot of energy and produces e-waste. Significant processing power is needed for the mining process, which entails resolving challenging mathematical riddles to validate transactions and safeguard the network. Consequently, the global Bitcoin mining network uses enormous quantities of electricity, which exacerbates climate change by increasing carbon emissions (United Nations University, 2023). Furthermore, The Guardian piece by Eva Salam emphasizes how Bitcoin's environmental impact is worsened by its dependence on energy-intensive mining activities that are primarily powered by fossil fuels. The procedure contributes to environmental deterioration and global warming by releasing carbon dioxide and other hazardous byproducts into the atmosphere. The spread of electronic trash from outdated mining equipment exacerbates this environmental harm (Salam,2023).

Concerns about sustainability and ethics are raised by the harm Bitcoin causes to the environment. Some contend that the advantages of Bitcoin outweigh its environmental cost, while others support the development of more environmentally friendly substitutes or enhancements to Bitcoin's energy efficiency. Bitcoin's environmental effect could be reduced by switching to renewable energy sources for mining activities or by putting greener technologies into use. In summary, Bitcoin offers advantages to both individuals and enterprises, making it a vital player in the financial scene. Nonetheless, the linked papers' emphasis on its effects on the environment highlights the necessity of sustainable mining methods for cryptocurrencies. For Bitcoin to be used responsibly and sustainably, its advantages and disadvantages concerning the environment must be balanced.

References

United Nations University. (2023, October 24).UN study reveals the hidden environmental impacts of bitcoin: Carbon is not the only harmful by-product.https://unu.edu/press-release/un-study-reveals-hidden-environmental-impacts-bitcoin-carbon-not-only-harmful-product#:~:text=Bitcoin%2C%20the%20most%20popular%20cryptocurrency,the%20worldwide%20Bitcoin%20mining%20network.

Salam, E. (2023, April 26).Bitcoin is terrible for the environment - can it ever go green?The Guardian.https://www.theguardian.com/technology/2023/apr/26/bitcoin-mining-climate-crisis-environmental-impact

Post 2

Bitcoin is a cryptocurrency, which is a virtual currency that operates on a decentralized computer network (Salam, 2023; Yorkville University, n.d.). Bitcoin mining is the verification of transactions on the blockchain, with the blockchain acting essentially like a series of ledgers which records and verifies all transactions (Salam, 2023; Yorkville University, n.d.). In other words, bitcoin mining is the process of creating new bitcoins and entering them into the network. Since a limited number of bitcoins and confirming transactions require solving complex algorithms, miners invest in more advanced equipment to mine more efficiently and get paid (Salam, 2023; Yorkville University, n.d.).

Given Bitcoin's status as the most widely recognized cryptocurrency and its utility for facilitating transactions between businesses and individuals, its importance is significant for those who have invested in it (United Nations University, 2023).

The issue with Bitcoin is the massive computing power and electricity the mining process creates, posing environmental concerns (Salam, 2023; United Nations University, 2023). Bitcoin mining causes a substantial carbon footprint as well as large water and land footprints, with it noted that if "Bitcoin were a country, its energy consumption would have ranked 27th in the world, ahead of a country like Pakistan, with a population of over 230 million people. The resulting carbon footprint was equivalent to that of burning 84 billion pounds of coal or operating 190 natural gas-fired power plants" (United Nations University, 2023, para. 6). Thus, immediate regulatory action and advancements in technology are imperative to address environmental concerns while ensuring accessibility of cryptocurrencies to investors.

References

Yorkville University. (n.d.). Lecture. https://yec.sharepoint.com/:v:/r/sites/LD-BBA/Shared%20Documents/BUSI%204023/BUSI%204023%20-%20Unit%202%20%26%203%20-%20Sustainability%20or%20Profit.mp4?csf=1&web=1&e=Wa7kMh&nav=eyJwbGF5YmFja09wdGlvbnMiOnt9LCJyZWZlcnJhbEluZm8iOnsicmVmZXJyYWxBcHAiOiJEaXJlY3RFbWJlZFBhZ2UiLCJyZWZlcnJhbE1vZGUiOiJtaXMiLCJyZWZlcnJhbFZpZXciOiJwb3N0cm9sbC1jb3B5bGluayIsInJlZmVycmFsUGxheWJhY2tTZXNzaW9uSWQiOiJhMjVhMTYzZi1jOGMyLTQ0YTItODE5OS01OGI3MmJhOWExMzgifX0%3D

Post 3

Hello class,

Bitcoin was introduced to the public in 2009 byan anonymous developer or group of developers using the name Satoshi Nakamoto. It is a cryptocurrency, a virtual currency designed to act as money or a form of payment outside the control of any one person, group, or entity (Mansa & Jackson 2024). Therefore, this removes any third-party involvement in any sort of transaction or purchase.

Businesses and individuals mainly benefit from Bitcoin not so much as a medium of exchange, but for its investment value. Investors and speculators became interested in Bitcoin as it grew in popularity and the demand for it began to rise, many traders began using cryptocurrency exchanges to make short-term trades with high profits (Mansa & Jackson 2024).

However, despite some of these great advantages Bitcoin does come with its share of disadvantages, including environmental damage. "During the 2020-2021 period, the global Bitcoin mining network consumed 173.42 Terawatt hours of electricity. This means that if Bitcoin were a country, its energy consumption would have ranked 27th in the world...the resulting carbon footprint was equivalent to that of burning 84 billion pounds of coal or operating 190 natural gas-fired power plants. To offset this footprint, 3.9 billion trees should be planted" (United Nations University, 2023). The fact that 'mining' Bitcoin requires so much energy, that its consumption could be considered a country and a high ranking one, is quite concerning for the environment. As someone who doesn't have a connection with Bitcoin, I don't really see that it is worth the damage caused to the environment. I would be curious to see if world leaders begin to note the damage that Bitcoin causes and begin regulating its uses to help reduce environmental impacts.

References

Mansa,J., & Jackson,A. (2024, February 24).What is Bitcoin? How to Mine, Buy, and Use it. Investopedia.https://www.investopedia.com/terms/b/bitcoin.asp