Ever since Elon Musk, the founder of Tesla and the promoter of Dogecoin, criticized bitcoin’s energy-intensive mining process, cryptocurrency aficionados are caught in a dilemma.
Is Bitcoin really a climate change contributor?
Bitcoin mining is the process of generating additional bitcoins while verifying transactions on the network. High-speed computers are deployed to solve complex mathematical puzzles.
Invest In Crypto With Just Rs.100
On average, it takes around 10 minutes and 72,000 GW of power to mine a bitcoin. By some estimates, the annual electricity consumed in bitcoin mining is more than Malaysia, Sweden, or Argentina.
However, a study conducted by the University of Cambridge indicates that 76% of crypto miners use renewables as part of their energy mix. Besides, cryptocurrencies’ carbon emissions are negligible in comparison to the value they provide.
Crypto Climate Accord: The purpose
To mitigate the carbon footprint caused by cryptocurrency mining, a consortium of 45 private fintech companies and individuals have come together and formed the Crypto Climate Accord (CCA).
The UN-backed CCA, inspired by the Paris Climate Agreement, is on a mission to decarbonize the cryptocurrency industry by 2030.
On 30th June, Terra Pool, a Vancouver based bitcoin mining company, became the latest entrant to the CCA. Also, Terra Pool is the world’s first mining pool to be powered exclusively by clean energy.
Why is the Crypto Climate Accord important?
The World Bank and countries like China are using climate concern as a coverup to clamp down on bitcoin. By achieving the CCA targets, cryptocurrency will become one of the earliest adopters of carbon-neutral policies.
Moreover, however big or small, fossil-fuel consumption has pushed the planet earth to the brink of extinction. Any future technology, including the revolutionary blockchain, aimed at bettering society must be vetted for environmental sustainability.
Green Alternatives to Bitcoin
For eco-friendly investors unwilling to wait till bitcoin turns 100% carbon neutral, multiple greener options await.
Ethereum (ETH), Polkadot (DOT) and Cardano (ADA) are three prominent altcoins that are quickly catching up. The Proof of Stake (PoS) validation deployed by them circumvents the energy-intensive mining process.
The future is certainly green for crypto-investors.
P.S: KuberVerse is an educational initiative. Anything expressed here directly or indirectly is not investment advice. And we ask you to do your own research before investing.
Disclaimer : Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The information provided in this post is not to be considered as investment/financial advice from CoinSwitch. Any action taken upon the information shall be at user's own risk.
Table of content
Subscribe to Our Newsletter with exclusive content.