Current Trends in Sustainability of Bitcoins and Related Blockchain Technology

Pasquale Giungato, Roberto Rana, Angela Tarabella and Caterina Tricase
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Pasquale Giungato: Department of Chemistry, University of Bari, Bari 70125, Italy
Roberto Rana: Department of Economics, University of Foggia, Foggia 71121, Italy
Angela Tarabella: Department of Economics and Management, University of Pisa, Pisa 56126, Italy
Caterina Tricase: Department of Economics, University of Foggia, Foggia 71121, Italy

Sustainability, 2017, vol. 9, issue 12, 1-11

Abstract: Bitcoin is a digital currency based on a peer-to-peer payment system managed by an open source software and characterized by lower transaction costs, greater security and scalability than fiat money and no need of a central bank. Despite criticisms about illegal uses and social consequences, it is attracting the interest of the scientific community. The purpose of this work is to define and evaluate the current trends of the literature concerned with the sustainability of bitcoin, considering the environmental impacts, social issues and economic aspects. From the analysis it emerges that the transition of the whole monetary system in the new cryptocurrency will result in an unacceptable amount of energy consumed to mine new bitcoins and to maintain the entire virtual monetary system, and probably bitcoin will remain a niche currency. Blockchain, which is the base for a distributed and democratically-sustained public ledger of the transactions, could foster new and challenging opportunities. Sharing the framework of medical data, energy generation and distribution in micro-grids at the citizen level, block-stack and new state-driven cryptocurrencies, may benefit from the wide spread of blockchain-based transactions. Under the perspective of its being a driver of social change, bitcoins and related blockchain technologies may overcome the issues highlighted by numerous detractors.

Keywords: bitcoin; sustainability; monetary exchanges; digital currency; energy consumption (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (40)

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