An inconvenient market : the planetary destruction by the crypto-assets market and what we should do about it

Abstract

It is clear to see that the crypto-assets market is one of the most innovative and fastest growing markets in the world. However, behind this impressive rise in the status of the market, lies a much more troublesome reality. Research has shown that the use of unsustainable mining mechanisms used in the mining of crypto-assets, is severely carbon emitting and is subsequently preventing countries from achieving their climate goals. Accordingly, the exponential emissions of crypto-assets is such that it is substantively one of the most proportionately threatening markets to the environment on earth. If the leading crypto-asset, Bitcoin, was a country it would be the 33rd most carbon-emitting country in the world with a higher emissions level than the Netherlands. On the other hand, what is equally disturbing about this colossal threat to the environment is that it is barely environmentally regulated at all. Evidently, what this dissertation investigates is as to how the crypto-assets market can be effectively regulated on a global scale, and what the requisite global framework would need to look like to effectively bring an end to this imposing environmental threat. Subsequently, the first chapter of this dissertation establishes the facts and debunks the myths surrounding the true environmental impacts of the market, thus clarifying exactly why regulatory intervention is urgently needed. The second chapter establishes the current regulatory efforts and theorises as to which jurisdictions or industry leaders are the most likely to lead global efforts in pioneering environmental intervention into the market. The third and final chapter delves deep into the need for an all-encompassing global framework for fighting the market’s environmental impacts on all fronts. This chapter subsequently highlights various potentially innovative measures that could make an enormous difference in the broader climate crisis, including regulating blockchain with blockchain and decentralised global carbon markets.