The crypto‐trade volume, GDP, energy use, and environmental degradation sustainability: An analysis of the top 20 crypto‐trader countries

The global ecosystem and human life are both endangered due to the amount of CO2 emission discharged into the natural environment. The exponential crypto‐trade growth, high density of modern technology, and rapidly changing technological needs of human beings have experienced an unresolved problem in environmental sustainability and poisonous emissions in the top 20 crypto‐trader countries. This research paper investigates the empirical impact of crypto‐volume, gross domestic product (GDP), and energy use on environmental sustainability. The CO2 emission is considered as a proxy of environmental degradation in the top 20 crypto‐trader countries. The cross‐sectional dependence and data homogeneity are checked by employing panel unit root and cointegration techniques for 2012–2019. The study's empirical findings indicated a long‐run relationship between CO2 emission, crypto‐volume, GDP, and energy use. The long‐run relationship confirmation was also received from the fully modified ordinary least square, dynamic ordinary least square, and vector error correction model (VECM). The VECM verifies bidirectional causality between environmental degradation and crypto‐volume for long‐ and short‐term and unidirectional causality for GDP and energy use. In this modern age, not only crypto‐trading but also energy use and GDP are interlinked with e‐wastage, which significantly disturbed environmental sustainability, leading to emissions and climate change. The adverse effects of crypto‐trade, GDP, and energy use increase inequalities. This research recommends to governments and fiscal policymakers to de‐socialize high energy‐consuming blockchain technology. It replaces it with green and less energy‐consuming technology to reduce the negative environmental impact of externalities. Furthermore, appropriate green fiscal reforms should follow to minimize the impacts of CO2 emission.