What Is the Environmental Impact Critique of PoW and How Does It Affect Its Network Effect?
The critique is that Proof-of-Work (PoW) consensus requires immense energy consumption for mining, leading to a significant carbon footprint. This environmental concern can negatively affect the network effect by deterring environmentally conscious investors, institutions, and users.
It also invites regulatory scrutiny, which poses a systemic risk to the network's long-term adoption and value proposition.
