One of the major criticisms of Bitcoin is that mining consumes such a vast amount of energy, it must have a negative impact on the environment. While Bitcoin and crypto mining are not necessarily the worst culprits in terms of energy consumption, climate change concerns are real. Humans aren’t doing enough to save the planet we’re destroying. Carbon credits and carbon offsetting may offer a solution, however. The tokenization of carbon assets could provide a way to make these practices more mainstream and effective.
Climate Change and Greenhouse Gases
Despite high-profile deniers who shall not be named, climate change is generally accepted within the science community.
The atmosphere of the Earth produces a natural greenhouse effect. When solar energy hits the surface of the planet, it radiates back again. Gases in the atmosphere trap in some of that heat, while the rest subsequently escapes. Under normal circumstances, this effect maintains the planet at a regular temperature which sustains life on Earth.
Burning carbon-based fossil fuels release greenhouse gases, including carbon dioxide and methane, into the atmosphere. The increase in greenhouse gases means that less heat can escape out of the atmosphere, therefore, the planet warms up. Due to increases in manufacturing and industry, as well as a far bigger global population, we now burn 1,300 times the amount of fossil fuels than we did 200 years ago.