As it emerges that around 37 per cent of Brits are in favour of a complete ban on cryptocurrency ‘mining’ in the UK due to its environmental impact, where does this leave the crypto market? Forbes Advisor reveals new data that hints at where the future of crypto may be headed.
Crypto mining is an energy-intensive process as it relies on significant amounts of computing power – causing many in the UK to oppose it. Some analysts have even suggested that Bitcoin mining alone consumes more energy in a year than some countries.
With this in mind, 42 per cent of Brits believe the crypto industry must do more to mitigate its environmental impact. Meanwhile, 51 per cent, are in favour of government regulations aimed at addressing and reducing carbon emissions caused by cryptocurrency activities.
Among adults aged 18 to 34, 44 per cent support a complete ban on cryptocurrency mining due to environmental concerns. Of those aged 35 to 54, 35 per cent favour the ban, while the same amount of those aged over 54 agree.
While there appears to be no substantial gender divide regarding support for a ban, 40 per cent of men and 34 per cent of women are in favour, men are twice as likely as women to oppose the ban. Seventeen per cent of men are against prohibition, while only eight per cent of women oppose the ban.
The Forbes Advisor study also highlights the need for more education on the issue. Overall, 59 per cent of Brits are not fully aware of how people mine cryptocurrencies and the environmental impact of this process.
How is this attitude to crypto impacting actions?
Environmental concerns influence the investment decisions of around 16 per cent of investors, whereas the majority prioritise other factors. The top considerations for investors are the potential returns on their investments (37 per cent), the cost associated with purchasing cryptocurrencies (31 per cent), and the popularity of specific digital assets (25 per cent).
Significantly, 21 per cent of Brits express a willingness to invest in environmentally friendly cryptocurrencies, even if they offer potentially lower returns. This is even more pronounced among those who have already invested in cryptocurrencies or are planning to do so, with 58 per cent open to making such eco-conscious investment choices.
Meanwhile, 38 per cent who have invested in cryptocurrencies have deliberately avoided specific digital assets due to their perceived environmental impact.
Mark Hooson, crypto expert at Forbes Advisor, explained his take on the findings: “Support for a crypto mining ban is notable, and a substantial number of investors are open to less energy-intensive ‘proof of stake‘ cryptocurrencies, even if it means the possibility of lower returns. Many investors are starting to weigh both the potential returns and the environmental impact of their choices.
“Those concerned about the environment will want to research and choose cryptocurrencies and investment platforms that prioritise sustainability. By increasing awareness and making informed choices, investors can contribute to a more sustainable cryptocurrency landscape.”
In total, 27 per cent believe it is possible to power cryptocurrency mining operations with renewable energy sources. When questioned about why they would not pursue this route, concerns about market stability (36 per cent) emerged as the primary reason. Other significant barriers include a lack of access to reliable information (29 per cent) and uncertainty regarding regulatory issues and legal compliance (25 per cent).