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crypto mining
New Probe Reveals 'Real-World Harm' of Crypto Mining Operations
"This report vividly shows how proof-of-work crypto-mining operations are contributing to increased air, water, and noise pollution in many communities across the U.S."
Apr 05, 2023
A report published Wednesday by the Environmental Working Group examines how the "mining" process behind popular cryptocurrencies including bitcoin, Dogecoin, and Monero creates a wide range of pollution that is harming communities and fueling the climate emergency.
The EWG report—entitled Proof of Problems: Bitcoin Mining's Pollution Toll on U.S. Communities—profiles six case studies of adverse effects of the cryptocurrency mining process known as "proof-of-work."
"This report vividly shows how proof-of-work crypto-mining operations are contributing to increased air, water, and noise pollution in many communities across the U.S.," EWG policy director and report co-author Jessica Hernandez said in a statement.
"It amplifies the voices of those who are fighting to save their homes and livelihoods from the bitcoin mines invading their communities," Hernandez added. "The industry cannot continue to turn a blind eye to the real-world harm it is causing or greenwash the problem away."
\u201cOur new analysis showcases the devastating environmental impact of #Bitcoin mining on communities across the nation. #ChangeTheCode\n\nhttps://t.co/lIG32P0hP8\u201d— EWG (@EWG) 1680709503
As an executive summary of the report details:
Not all bitcoin mines are alike. Some rely on the resurrection of dormant fossil fuel power plants, some find low-cost high-pollution fuel sources like burning coal waste in Pennsylvania, and others flare gas from oil wells to generate the necessary electricity, like the mines blighting Montana's scenery.
They all use the same technology, individual computer hardware no bigger than a shoe box or two, all competing to solve the same puzzle and earn a few bitcoin. But it takes thousands of these mining computers, called rigs, to become competitive in the mining industry. That's why some companies are placing multiple shipping crates full of bitcoin mining rigs in communities across the U.S...
What these mines have in common is their use of proof-of-work, which is wasteful by design. This system, a type of software to record and manage bitcoin transactions, has proven highly inefficient, requiring massive amounts of fossil fuel-generated electricity to operate. Proof-of-work is a source of constant noise, a blight in communities across the country, and a hotbed of fraud and corruption that bilks consumers and ratepayers out of billions of dollars.
"Despite staunch opposition nearly everywhere bitcoin is mined, Wall Street bankers and other large financial backers manage to continue this assault on climate and communities across the country," the report states. "Change is needed, and it's needed urgently."
\u201c"Living near a crypto mine was so stressful, we sold our house and moved," Cyndie Roberson told EWG.\n\nSuch is life living near a #Bitcoin mining operation. @CleanUpBitcoin \n\nhttps://t.co/I51L7dBhR3\u201d— Alex Formuzis (@Alex Formuzis) 1680714542
One of the report's case studies shows how a Blockstream mining center in Adel, Georgia created so much noise that the residents of one nearby house spent thousands of dollars to install 11 layers of insulation as the constant din damaged their hearing and kept them captive in their own home.
"It sounds like 1,000 jet engines taking off at one time. You can hear it five miles away from here," said Annette Tiveron, who lives in the house. "It ripples our pond from the vibration with the machines. It's literally shaking your brain."
The EWG report renews the group's calls to "change the code, not the climate" and highlights alternatives to proof-of-work, such as "proof-of-stake," to which the cryptocurrency Ethereum switched last year.
\u201cWe\u2019ve heard so many stories about the harms Bitcoin mining has had on communities across the country. \n\nIt\u2019s not a smart \u201cbusiness development\u201d or \u201cfinancial choice\u201d if it comes at the expense of ordinary people\u2019s clean air, water, and climate.\u201d— Change The Code (@Change The Code) 1680628980
"Speaking with people around the country has been eye-opening in revealing the extent of the problems that bitcoin mines are causing in communities," EWG editor in chief and report co-author Anthony Lacey said in a statement. "It's hard to learn of these stories and not ask why bitcoin miners can't change their code to be better neighbors."
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NY Agency Sued Over Cryptomining Operation That Could Increase Plant Emissions by 3,500%
"New York's landmark climate law means that agencies can't ignore the climate and environmental justice consequences of their decisions," said one advocate.
Jan 13, 2023
Three climate action groups said Friday that New York's decision to allow a Canadian cryptocurrency mining company to control a fracked gas power plant is a clear violation of the state's landmark climate protection law as they sued a state commission in Albany County Supreme Court.
The lawsuit, filed by Earthjustice on behalf of Clean Air Coalition of Western New York and the Sierra Club, comes four months after the New York Public Service Commission approved the sale of the Fortistar North Tonawanda power plant in the Buffalo area to Digihost International.
The transfer gave Digihost approval to operate round-the-clock, 365 days per year, increasing the facility's greenhouse gas emissions up to 3,500% as it conducts its proof-of-work cryptocurrency mining operation, said Earthjustice.
As Sierra Club and Earthjustice explained in a report last year:
The process effectively entails millions of computing machines racing to solve a complex, but meaningless, problem. In Bitcoin's algorithm, for example, the computer or mining machine that successfully solves the problem is rewarded with Bitcoin (and functionally verifies the blockchain). As long as the reward is high enough (i.e., the price of Bitcoin is high enough), miners will attempt to use more—and faster—mining machines to increase their chances of winning that reward.
"Top-down estimates of the electricity consumption of cryptocurrency mining in the United States imply that the industry was responsible for an excess 27.4 million tons of carbon dioxide (CO2) between mid-2021 and 2022—or three times as much as emitted by the largest coal plant in the U.S. in 2021," the report said.
As it announced the lawsuit Friday, Earthjustice noted that Digistar could massively ramp up emissions as the rest of the state works to comply with the 2019 Climate Leadership and Community Protection Act, which requires all state agencies to consider the implications for disadvantaged communities and for emissions reduction when making decisions.
"New York's landmark climate law means that agencies can't ignore the climate and environmental justice consequences of their decisions. We're calling on the court to hold agencies accountable and ensure that cryptocurrency miners don't get a free pass to heat our planet and damage our communities," said Dror Ladin, senior attorney at Earthjustice.
The plant in question is located near a number of neighborhoods that have been designated by the state as "disadvantaged communities," where residents face a greater environmental burden than 90% of New York. Cryptomining at Fortistar North Tonawanda could raise the residents' risk of developing asthma, cancer, and other conditions that could lead to premature death.
"Everything changed when New York state enacted its landmark climate law," said Roger Downs, conservation director for the Sierra Club Atlantic Chapter. "The Public Service Commission can no longer ignore the impacts of its decisions, especially when they run counter to public benefit and endanger the air quality for communities already burdened with a disproportionate amount of pollution. Allowing a failing gas fired power plant to be acquired and revived by an energy-hungry cryptomine, without considering the environmental impacts, runs counter to the intent of the climate law and the justice it seeks to advance."
The local conservation group Seneca Lake Guardian applauded the groups for challenging the commission's approval of the sale.
\u201cThank you, \u2066@Earthjustice\u2069 \u2066@SierraClubNY\u2069 \u2066@cleanairwny\u2069 ! https://t.co/9fQS7vmvrp\u201d— Seneca Lake Guardian (@Seneca Lake Guardian) 1673639849
"Clean Air will continue to fight against the burning of fossil fuels to generate power for cryptocurrency mining, especially in residential areas like North Tonawanda," said Chris Murawski, executive director of the Clean Air Coalition of Western New York.
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