The growing interest in cryptocurrency has also led to an increase in the negative environmental effects of mining and verifying those coins as authentic. Very powerful computers with exorbitant energy demands are needed to run the algorithms that digital currency mining operations depend on. The University of Cambridge estimates that Bitcoin alone generates 132.48 terawatt-hours (TWh) annually, which surpasses the energy usage from the entire nation of Norway. Another popular coin, Ethereum, consumes 105.36 TWh annually. In fact, a single Ethereum transaction requires as much power as an average American household uses in 8.76 days. If the energy demands of Bitcoin and Ethereum were a country, they would rank 12th in worldwide consumption between the United Kingdom and Italy.
You can donate cryptocurrency directly to Carbonfund.org through Endaoment. This can be either to mitigate the emissions created through crypto generation, to neutralize your carbon footprint, or to support their industry-leading carbon offset projects. Endaoment has also created the Crypto Carbon Offset Fund which goes to support excellent environmental charities such as Carbonfund.org, Cool Effect and Bonneville Environmental Foundation.
Will your transaction be tax deductible? According to Endaoment: “Direct Donations are routed through the Endaoment Direct Donations Community Fund to the compliant 501(c)(3) of your choice. This allows us to preserve the tax deductibility of the gift, while decreasing the time it takes for us to deliver it and reducing the number of transaction donors are required to broadcast using their wallet.” Your cryptocurrency donation will go to public charities and you can receive a tax deduction for your crypto philanthropy. Crypto donors should consult with a tax advisor to further understand the impact making a crypto donation might have on your income tax or capital gains taxes.
Endaoment and Carbonfund.org believe the Bitcoin and other cryptocurrencies community should play an active role in mitigating the effects it has on energy consumption and the environment.