The Crypto Scam That is Killing Our Planet

Illustration by Holly Ji

By: Holly Ji

Want to get rich quick? Be sure to invest in cryptocurrencies that are not only the hottest new trend but the hottest nightmare for the environment. Capitalism has welcomed the sudden surge of NFT, or nonfungible token, production and trade. From a “CryptoCrisp” pringles flavor to Gorillaz, ironically a band notorious for its anti-capitalist themes, announcing their soon-to-be-released NFT collection, it’s safe to say NFTs are popular. NFTs are just like every other crypto fad you’ve seen, except they tie in images, sound files, and text. 

The biggest issue with NFTs and any other cryptocurrency is their involvement in speeding up climate change. Similar to how coal mining or cobalt mining harm the earth, bitcoin mining, although “safely” executed through computers, produces horrifying amounts of carbon emissions. Bitcoin mining is an odd process which is why a lot of people don’t understand the damage of cryptocurrencies. In simple terms, when an NFT is put up for sale, miners compete to solve blocks that identify that NFT as the unique piece the buyer wants. If a miner succeeds in solving the block, it receives a reward, while the other miners get nothing. This process is what expends a tremendous amount of energy and kills our planet. Bitcoin mining consumes more electricity per year than the entire country of Argentina, according to a Cambridge University report. Additionally, the Digiconomist says that a single bitcoin transaction takes about 707.6 kilowatt-hours of electrical energy, which is approximately equal to the electricity generated by an average US household over the course of 24 days. Ignoring the ecological harm, what do NFT supporters say?

Pro-NFT arguments are ridiculously weak, like “it supports artists” or “it makes each piece unique, like if you owned the Mona Lisa.” News check, unique pieces of digital art can be sold and distributed without ruining the environment! For years, digital artists have been freelancing and taking commissions to make money from their art. If NFT supporters really wanted to help artists, they would commission them and leave a generous tip. The argument that NFTs are the only way to own a “unique piece of digital work” is stupidly misinformed when you see how artists can simply watermark their commission for public use and send the customer a full-resolution, unwatermarked version for private use. The real thing you’re paying for are bragging rights, a blockchain entry, and a horrible investment. A horrible investment? At this point, why buy an NFT if it won’t give you money?

This is where the scam part of cryptocurrencies comes in. Many famous artists are deleting any trace of their involvement in NFTs after they got their share of the money, and the average resale price of NFTs is down about 70% from the peak in February. The “poor individuals” that have invested in the NFT fad are left with dying investments, while the sellers run off with millions of dollars. Those who hold onto their NFTs still have to beware of NFT thieves and bit rot, where image quality deteriorates or file formats don’t work anymore. 

Overall, if you think selling your morality and planet is worth the small possibility of getting some money, NFTs are a great, totally fun way to help the sea levels rise and the animals go extinct.