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A Matter of Degrees

Crypto Has a Climate Problem

A Matter of Degrees

Dr. Leah Stokes, Dr. Katharine Wilkinson

Government, Society & Culture

4.8533 Ratings

🗓️ 17 November 2022

⏱️ 46 minutes

🧾️ Download transcript

Summary

This episode delves into the murky world of cryptocurrency and its impact on our planet. Join Katharine and Leah as they discover how digital currencies are breathing new life into previously shuttered coal plants across the United States. 


This episode features Alex de Vries, data scientist and founder of Digiconimist, an online platform that tracks Bitcoin's energy consumption; Anne Hedges, the director of policy and legislative affairs at watchdog organization Montana Environmental Information Center; and New York State Assemblymember Anna Kelles, who sponsored a bill to establish a two-year moratorium on crypto mining in New York.


Leah mentions this White House report about the climate impacts of cryptocurrency. Alex points out how famous cryptographer Hal Finney foresaw crypto's huge emissions from the start. Anne mentions how China cracked down on cryptocurrency, which has pushed companies to operate in other nations, including the United States. Assemblymember Kelles warns that Bitcoin won't deliver on equity or access to wealth: roughly 0.01% of wallets hold 27% of the currency. On the bright side, Ethereum, the second-largest cryptocurrency, just reduced its energy consumption 99% by switching to proof-of-stake


Next time, we'll look at the fight for climate accountability within corporate America. Subscribe wherever you get your podcasts and don't miss a single episode this season!

Transcript

Click on a timestamp to play from that location

0:00.0

In the fall of 2021, a coal plant, just north of the Crow Reservation, near Hardin, Montana started burning coal.

0:09.0

This was strange because just a few years before, the plant was as good as dead, until suddenly it came back to life.

0:17.0

We were watching the plant slowly die.

0:21.5

It just wasn't operating very much.

0:24.0

They were looking desperately for any buyers and the state to bail them out.

0:30.3

Nobody was willing to do so.

0:31.8

So we thought the plant was really going to go away very soon.

0:36.0

And then crypto happened. And with the, you know, introduction of the use

0:41.1

of crypto at the plant, its operations have been nearly full bore over the course of the last year.

0:48.5

It's just shocking to see so much climate pollution going into the air suddenly from a plant that was about to go by the wayside.

0:59.1

That's Anne Hedges, the Director of Policy and Legislative Affairs at Montana Environmental Information Center, or M-EIC.

1:06.9

After working to shut down this plant for more than 15 years, she found herself losing ground.

1:12.5

It felt like one day we woke up and started noticing that the plant was operating an awful lot.

1:19.6

And somebody said, have you seen Marathon Digital Holdings website?

1:23.9

And so we looked and that's when we found out what had happened and that it had been made

1:30.0

available to this crypto operator who was purchasing what are known as miners in huge quantities.

1:39.4

It's dramatic by the numbers.

1:42.5

If you look in 2020, the plant operated for 48 days. If you look in

1:48.2

2021, the plant operated for 323 days. That's a giant increase. So I went out there last fall just to have a

1:57.1

look. And what you see out there is the coal plant operating, lots of steam and

2:03.6

pollution coming out of the stack. But in the back end, you see this really big building.

2:10.6

That didn't used to be there. That's where they're putting the miners. And that's where they're operating this crypto operation.

...

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