Gavin Andresen - 2011-03-20 20:35:34

If more bitcoin adoption means bitcoin mining replaces actual, physical gold and silver mining then that should be a net positive for the environment.  Gold mining is dirty, dangerous, and destructive; if bitcoins eventually become "a better gold", then there will be less pressure to dig up virgin wilderness.

Right now, bitcoin mining is inefficient, but natural economic forces will make it become increasingly efficient.  We've already seen that, with more efficient GPU mining replacing CPU mining because you get more hashing for less electricity.

Eventually, I'm confident you'll see big commercial-scale bitcoin mining operations in places where either electricity is clean and cheap to produce, or where the waste heat from bitcoin production is put to productive use (maybe we'll all have network-connected bitcoin-mining space heaters to warm our offices in 10 years).

Before then, we probably will see bitcoin production using cheap, dirty electricity in poorer countries.  If history is any guide, as that helps to make those countries richer their citizens will demand better environmental standards.  Even if we all decided that is unacceptable, I don't see any way to prevent it-- there's no way to tell if a bitcoin was generated using solar panels in the Sahara or dirty coal in Pennsylvania.