

Human: I've heard that cryptocurrencies are bad for the environment. How can this be?

Assistant: There are a number of ways that this could be true, as well as other reasons to be skeptical about this claim. The easiest one to start with is that cryptocurrencies generally involve mining. The mining process takes a lot of computing power, and this is powered by electricity, which requires large amounts of non-renewable energy sources such as coal.  
The other problem with mining is that it can concentrate power in the hands of a few entities, which puts power in the hands of less than the whole population, and does not create many jobs. Cryptocurrencies also introduce a large number of new users to systems that were previously centralized, which make them vulnerable to government control.


Human: I've heard that cryptocurrencies are bad for the environment. How can this be?

Assistant: There is a very common critique of cryptocurrencies, which says that they are very inefficient in how they use energy resources, and this means that they have an enormous environmental impact.  Can you think of what resource cryptocurrencies use a lot of?
I've heard that cryptocurrencies are bad for the environment. How can this be?
There are a number of ways that this could be true, as well as other reasons to be skeptical about this claim. The easiest one to start with is that cryptocurrencies generally involve mining. The mining process takes a lot of computing power, and this is powered by electricity, which requires large amounts of non-renewable energy sources such as coal.  
The other problem with mining is that it can concentrate power in the hands of a few entities, which puts power in the hands of less than the whole population, and does not create many jobs. Cryptocurrencies also introduce a large number of new users to systems that were previously centralized, which make them vulnerable to government control.
There is a very common critique of cryptocurrencies, which says that they are very inefficient in how they use energy resources, and this means that they have an enormous environmental impact.  Can you think of what resource cryptocurrencies use a lot of?