Cryptocurrency & Its Impact on Environment

ArXiv ID: ssrn-3846774 “View on arXiv”

Authors: Unknown

Abstract

Cryptocurrencies have gone a long way since their inception. While the conventional financial sector initially dismissed digital currencies as tools for crooks

Keywords: Cryptocurrencies, Digital Assets, Regulatory Risk, Financial Innovation, Asset Class: Crypto

Complexity vs Empirical Score

• Math Complexity: 2.0/10
• Empirical Rigor: 2.0/10
• Quadrant: Philosophers
• Why: The paper appears to discuss the environmental impact of cryptocurrencies, focusing on descriptive and qualitative analysis rather than quantitative modeling or backtesting. The excerpt lacks advanced mathematical formulas, code, or empirical datasets, placing it in a theoretical discussion quadrant.

  flowchart TD
    RQ["Research Question:<br/>What is the environmental impact<br/>of cryptocurrency mining?"] --> M["Methodology<br/>Lifecycle Assessment (LCA) &<br/>Energy Consumption Analysis"]
    D1["Data: Bitcoin Network<br/>Hash Rate Distribution"] --> M
    D2["Data: Global Energy Grid<br/>Emission Factors"] --> M
    M --> C["Computational Process:<br/>Modeling Energy Mix &<br/>Carbon Footprint Calculation"]
    C --> F["Key Findings<br/>1. High energy intensity (Proof-of-Work)<br/>2. Varies by grid source<br/>3. Rising regulatory pressure<br/>4. Shift to Proof-of-Stake"]