What is the environmental impact of cryptocurrency mining: One concern about the widespread adoption of cryptocurrency is its negative effects on the environment.
Although cryptocurrencies are becoming more popular around the globe, there are still concerns about their widespread adoption as a method of payment. The argument against cryptocurrency is not only their lack of centralized regulation but also their potential to negatively impact the environment.
Let’s take Bitcoin, the most widely used cryptocurrency in the world. Although Bitcoin was hailed as a revolutionary platform for transactions, it lost favor with Elon Musk, Tesla founder. Musk cited the negative environmental effects of Bitcoin as the reason for choosing Dogecoin, another popular cryptocurrency.
What does it do to the environment?
Musk said, “Energy usage trend over the past few months is insane.” He was referring specifically to the energy needed for “mining” Bitcoin. High-powered computers are used to mine cryptocurrency. They compete in solving complex mathematical puzzles. This is a very energy-intensive process. Most cases of this process require fossil fuels, especially coal.
Deutsche Bank analysts have estimated that Bitcoin would consume about the same electricity per year as Ukraine if it were a country. Digiconomist discovered that Ethereum, another cryptocurrency uses nearly as much power per year as all of Switzerland. The Indian Bitcoin price was Rs. 35.3 lakhs and Ethereum price were Rs. As of August 13, 2013, 5 pm IST, 2.47 million
These cryptocurrencies create a lot of electrical waste and a large carbon footprint. This is not a good picture. According to another Digiconomist report, Bitcoin produces e-waste similar to the annual output of Luxembourg but its carbon footprint is similar to that of Greece. According to Digiconomist, Ethereum generates a carbon footprint that is comparable to Myanmar’s annual value.
What have you noticed?
Cambridge University has released new data that shows the geography of mining has changed dramatically over the past six months. This was due in part to China’s crackdown against cryptocurrency. In just a few days, more than half of the world’s Bitcoin miners went offline.
CNBC quoted Mike Colyer, Foundry CEO, as saying that this will force miners to search for stranded electricity that is renewable. “That will always represent your lowest cost. This will be a major win for Bitcoin’s carbon footprint.
You can also find a lot of other alternatives, which, although not as well-known as Bitcoin, Dogecoin, and Etherum are much more efficient. The price of Dogecoin in India was Rs. 21 at 5 pm IST on Aug 13.
Nano, one of these cryptocurrencies, is said to have the lowest energy footprint on the market. According to inquirer.net, Nano is not mined and uses low-energy processes to leave a smaller carbon footprint. This, in turn, allows for lower transaction fees.
Hedera Hashgraph, another no-mining cryptocurrency network, also offers a lower carbon footprint and lower transaction fees. It is also very popular. In September 2020, 1.5 million transactions were processed per day on average, nearly twice the amount of the Ethereum network.
Another cryptocurrency named Cardano (ADA) also uses an environmentally-friendly model. It uses one miner for every transaction — a random choice. It was co-created by Ethereum’s co-founder. The Cardano price was Rs. 160 at 5 pm IST on Aug 13.
Investors have many options to choose sustainable cryptocurrencies, depending on their preferences.