The dilemma at the center of crypto and climate change

The foundational ideologies of crypto aren't a great match for what's required to stop climate change. Something has to give.

Many words have recently been written about the climate impact of cryptocurrencies. The focus has been on the sources and quantities of energy being harnessed to mine new coins. It’s an interesting discussion but not one where I have anything new to say. What’s more interesting to me is the tension between the crypto community’s vision for the future and a planet that’s on the precipice of a climate disaster. In order to have a chance at creating the crypto-utopia of their dreams, the community’s true believers will have to reconcile the differences between their core ideologies and the reality of what it will take to preserve a stable climate. It’s not an impossible feat but it will be an immense test of mental flexibility.

So what is the ideology and vision at the center of crypto? It’s deeply libertarian and in many senses anarchist. Decentralization is fundamental to everything about crypto. No one person or group should be able to control or censor everyone else. If we assume good intentions it’s an appealing goal to strive towards. This essay by one of crypto’s truest and loudest believers Balaji Srinivasan best captures the vision for a decentralized crypto future. It’s worth a read just to understand the audacity of the envisioned utopia. It’s a future where we’ll create new countries in the cloud; where cryptocurrencies will reign supreme and existing governments will be unable to meddle with fiscal policy; where each person will be ensured a say in the law by participating in a decentralized autonomous organization. There’s a level of headiness that is hard to resist. The beating heart of crypto is freedom from centralization in every form. Who doesn’t want to have their right to vote enshrined in immutable and distributed code. Or to be able to send and receive money without paying rent seeking middlemen. Or to be able to live without fear of censorship by big social media companies. Down with centralization!

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