3.12. Environmental Principle

Cryptocurrency mining has a significant negative impact on the environment due to excessive energy consumption and adverse effects on the climate. Its direct harm to nature escalates into large-scale societal issues, affecting every individual, even those who don't participate in the industry. The mining process triggers a chain of environmental and social changes that already threaten global well-being and safety.

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Environmental Consequences of Mining:

1. Energy Consumption

Mining farms are often concentrated in regions with cheap electricity, increasing the strain on local power grids. The energy consumption of the Bitcoin network alone, excluding other cryptocurrencies, is comparable to the energy use of entire countries, such as Argentina or the Netherlands. Farms consuming industrial-scale electricity lead to energy shortages for local residents and businesses. In some areas, this causes rising electricity rates, particularly impacting the economies of poorer regions.

2. Carbon Footprint

Many mining farms operate in countries where coal and oil remain primary energy sources, resulting in significant carbon dioxide emissions that exacerbate global warming. Even in countries using "clean" energy, high electricity demand leads to increased overall consumption and the activation of coal plants during peak loads.

3. Electronic Waste

Mining equipment, such as GPUs, ASIC miners, and processors, has a short lifespan due to continuous operation, generating tons of electronic waste that is challenging to recycle. Some devices contain rare metals (lithium, cobalt), when their extraction also harms ecosystems, depletes resources, and pollutes water. Mining consumes massive amounts of electricity and creates resource shortages that otherwise could benefit society.

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Negative Consequences for Human Life:

1. Health Issues

Climate change and environmental pollution lead to increased disease rates. Poor air quality caused by fossil fuel combustion raises the incidence of cardiovascular and respiratory illnesses. Allergies and breathing disorders become increasingly common as a direct result of the energy race involving mining farms.

2. Rising Costs

While large mining farms earn millions, ordinary citizens face higher electricity and commodity prices. Increased resource costs exacerbate energy shortages and accelerate inflation, impacting utility and basic goods prices.

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Bitcoin miners are driven by the natural desire for profit, which is a positive motivation that fosters economic development and societal progress. However, their choice to invest in mining not only causes significant environmental harm but also creates risks for themselves due to high costs and declining profitability. Instead, they could redirect their resources to a more eco-friendly and promising cryptocurrency. By selling their mining equipment and investing in DeflationCoin, they would eliminate the need for massive energy consumption and harm to humanity while gaining the opportunity to earn substantially more compared to the outdated Bitcoin, whose growth potential is nearly exhausted.

DeflationCoin adheres to environmental principles as its functionality does not require the high energy expenditures seen in Bitcoin and other cryptocurrencies using the Proof-of-Work (PoW) algorithm. Coins are distributed based on geometric progression (details in Section 3.13) and are listed as descending limit orders, resembling Bitcoin's halving mechanism. Once purchased, investor funds are automatically allocated between two wallets in a 50/50 ratio: the marketing wallet and the technical development wallet. These funds are used for project development, bypassing energy-intensive mining and eliminating wasteful energy expenses.

By focusing resources on developing the deflationary ecosystem and promoting the project (rather than calculating complex and pointless algorithms as implemented in Bitcoin), DeflationCoin represents an advanced cryptocurrency with high potential and environmental awareness. Nature should not suffer due to Bitcoin's poorly thought-out model. If harm is inflicted on nature, it ultimately affects all of humanity. Essentially, cryptocurrency mining is a slow destruction of human society.