5 Myths About Crypto and the Environment: Nonprofit Edition

by | Feb 20, 2024

Many nonprofits exploring new fundraising methods may have considered accepting crypto donations. However, some decision-makers raise concerns about the environmental impact of the crypto sector. If you’re unsure about crypto donations for your organization, read on as we address key claims at the intersection of crypto, the environment, and social impact.

> This article is a part of our “Myths vs. Facts” series on crypto philanthropy.

1. Crypto’s Energy Usage

Myth #1: Crypto uses more energy than most industries.

Fact: Crypto, like other technologies, needs energy to work. But according to the White House, it uses a similar amount of energy as home computers or lights in U.S. homes. By comparison, the transportation industry accounts for roughly 25% of the world’s energy consumption.

Since Bitcoin proposes an entire self-contained monetary and payment system, you should probably be comparing that to the whole dollar system.

Nic Carter

Castle Island Ventures

Just by comparing crypto’s energy usage against other industries can challenge the idea that crypto uses too much energy, showing the importance of looking at the whole picture when thinking about its impact on the environment. 

2. Bitcoin Mining

Myth #2: Bitcoin mining is a particularly wasteful practice.

Fact: While concerns about Bitcoin’s energy use exist, the industry is actively adopting eco-friendly practices—with some estimates putting Bitcoin mining’s renewable sources exceeding 50%. Innovations like hydro-cooling farms and utilizing associated petroleum gas showcase a commitment to sustainability.

If people were 10% more efficient at shutting off their electronic devices when not using them, then that alone would save more energy than the global Bitcoin network uses.

Lyn Alden

Lyn Alden Investment Strategy

These recent advancements in making mining practices more sustainable signifies a positive shift towards minimizing the environmental impact of Bitcoin mining practices.

3. Blockchain and Sustainability

Myth #3: Blockchain can’t help solve society’s sustainability challenges.

Fact: Some people believe blockchain can’t help with sustainability, but experts from the United Nations think differently. They believe cryptocurrencies and blockchain technology can play a crucial role in making our world more sustainable and environmentally friendly. 

If a consumer wanted to see where [a product] came from and who independently verified its environmental footprint and sustainability, they could use blockchain to do it.

Mark Herrema

Newlight Technologies

This positive outlook suggests that embracing these technologies could lead to innovative solutions for our global sustainability challenges.

4. Cryptocurrency Donations for Environmental (and Other) Nonprofits

Myth #4: Environmentally-focused charities don’t accept crypto donations.

Fact: Thousands of charities, including those focused on the environment and sustainability, happily accept cryptocurrency donations. Organizations like Trees for the Future, Friends of Bonobos, and Virunga National Park actively embrace crypto contributions, showcasing a growing trend of charitable initiatives leveraging the benefits of cryptocurrency.

Crypto Philanthropy for a Greener Future 

With a crypto fundraising program that includes partnerships with generous NFT projects, Trees for the Future plants trees and trains communities on regenerative agriculture practices.

Read Story

EcoGift, our own commitment to sustainable crypto philanthropy, empowers nonprofits to accept crypto without fear. 

5. The Web3 Community’s Environmental Concerns 

Myth #5: The Web3 community isn’t passionate about reversing climate change.

Fact: Contrary to the belief that the Web3 community isn’t committed to addressing climate change, initiatives like KlimaDAO and the use of tokenized carbon credits, the ReFi (Regerative Finance) movement, and even carbon neutral blockchains like Celo demonstrate a passion for solving today’s pressing environmental issues.

The ReFi movement has provided a space for innovators, creatives and advocates to reconceptualize climate action at a pace uninhibited by the bureaucracy and politicization rampant across legacy sustainability systems.

Evin Cheikosman

Policy Analyst, Crypto Impact and Sustainability Accelerator, World Economic Forum

The Web3 community actively supports climate refugees through DeFi solutions and engages in fundraising for environmental causes. These actions underscore the community’s passionate efforts toward mitigating the effects of climate change.

Unlocking Crypto’s Potential: Elevate Your Fundraising with The Giving Block

Don’t let myths about cryptocurrencies hold your organization back from fundraising success. Discover the positive impact crypto can have. Explore The Giving Block’s crypto, stock, and DAF fundraising solutions and unlock innovative ways to make a difference.

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