One of the major headlines in the cryptocurrency market came when Elon Musk, the chief executive of Tesla, announced that they would no longer accept Bitcoin payments for their electric cars. This announcement had a massive impact on the value of Bitcoin, making it drop massively. One major reason cited by Elon Musk for this decision is the impact Bitcoin mining has on the environment.
According to him, mining cryptocurrency poses a potential threat to the environment if not checked. After a series of meetings and interactions, Elon Musk tweeted that Tesla can accept Bitcoin payments for its electric cars if issues around these environmental dangers are addressed.
Cryptocurrency Mining and Its Effects on the Environment
To learn how to mine cryptocurrency, you need to understand the materials needed beyond getting carried away by the huge profits from it.
Mining cryptocurrency at any level requires high computer processing power. To successfully mine a cryptocurrency, you need high-powered computers, huge amounts of electricity, and non-renewable energy sources. All of these make it possible to power complex algorithms and verify transactions.
Though Bitcoin mining is potentially rewarding, the long-term risk on the environment remains a worry for environmentalists. Reports have it that the energy required to mine Bitcoin every year is more than what is consumed by Sweden and Malaysia. The coal power requirement of mining Bitcoin is why we have many mining activities happening in China.
The carbon footprint of Bitcoin is one of the many reasons cited by the Chinese government for the ban of crypto-related activities in the country.
What Are Eco-friendly Cryptos Worth Considering?
If mining cryptocurrency comes with many environmental risks, should we then abandon the use of digital currencies? That’s not possible. Instead, it is best to consider other eco-friendly cryptos that pose as much threat as Bitcoin mining does. Some of these eco-friendly cryptos worth considering include:
XRP has been in the cryptocurrency news for quite a while now. The popularity of this coin is not only because of the XRP price but because of how eco-friendly it is. To mine XRP, you don’t need as much energy level as you do for Bitcoin mining.
Interestingly, for investors who want to buy a coin with a bright future, then the best choice is to buy XRP. It’s valuable, safe, and eco-friendly.
Over the last ten years, two digital currencies that have been in close competition are Bitcoin and Ethereum. It’s almost impossible to come across any cryptocurrency news where Ethereum isn’t featured. However, unlike its counterpart, Bitcoin, Ethereum doesn’t pose a threat to the environment.
Many investors who are inclined to environmental safety prefer to make investments in Ethereum. Not only is the mining process safer for the environment, but it has also recorded impressive value growth over the years. Though there are still some environmental concerns around it, efforts are being made to address these concerns and make Ethereum more attractive to investors.
Dogecoin, a meme coin and humorously referred to as Elon Musk’s coin, is another eco-friendly crypto worth considering. For traders who are conversant with cryptocurrency news, you must have come across tweets by Elon Musk relating to Dogecoin. You will also discover that these tweets have caused an impressive bullish pattern for this coin.
However, one reason why Musk supports this coin is because of how eco-friendly it is. Remember, the tech billionaire started losing interest in Bitcoin because of the environmental danger of mining cryptocurrency. As such, if he is ever throwing his weight around a cryptocurrency such as Dogecoin, then you should know it’s an eco-friendly alternative.
Nano is a digital currency that runs on a proof-of-work basis which means miners have to complete certain tasks in exchange for coins. However, unlike Bitcoin, there is a management system in place for Nano to check wastage.
The energy requirement of Nano is also less than what is required for Bitcoin. It achieves this through the Open Representative Voting protocol in place. All these and the instant, cost-free trade of this coin make it one you should consider buying.
Cardano is another eco-friendly crypto that uses Ouroboros, which is a proof-of-stake system. Players in the cryptocurrency market who want to join the Cardano network have to purchase tokens. This makes it possible for the network to achieve 1,000 transactions per second at a lower energy requirement than Bitcoin.
The proof-of-stake system of Cardano is blockchain-powered, which makes it secure and adds to its eco-friendly credentials. There is no talking about green cryptocurrencies without mentioning Cardano.
As we all look to diversifying our investments and increasing our crypto portfolio, we must also consider our environment. We all need a safe environment to live a healthy life, and that’s why all should consider greener cryptocurrency mining. Instead of investing in cryptocurrencies that cause harm to society, it is best to invest in eco-friendly alternatives.