Can cryptocurrencies be ecologically mined? [Green Bitcoin]

After the recent declines in the cryptocurrency market, caused by by Elon Musk, who stated that due to carbon footprint i environmental poisoning resigns from accepting Bitcoin fees for Tesla cars, a discussion has arisen as to whether cryptocurrencies can be ecological. This question, however, is wrongly posed. Because - like everything - over time they will have to be organicso the only question is when that happens. 

We won't go into the meaning of Elon Musk's Tweet in this article. The eccentric billionaire would not be himself if he had not introduced a commotion from which he would later be ineptly backing off. We are not going to discuss his motivations - whether it was just the whims of the rich man or a cold calculation to get rich in fast moves in the market. We will focus on checking how it is with this ecology on the cryptocurrency market.

Cryptocurrencies? The banking system is more energy-intensive

The fact is, you need to mine, trade, secure and so on cryptocurrencies Electricity. It is indisputable. As is the fact that much more electricity is consumed by the traditional banking system, which has already been calculated. 

In May 2021, the results of the Galaxy Digital study and report were published, entitled: "On Bitcoin's Energy Consumption: A Quantitative Approach to a Subjective Question". Thanks to the calculations included in it and their surprising (at least some) results, we know that the BTC network consumes an estimated 113,89 TWh per year. This is easy to compare to trade in goldwhich generates consumption ... 240,61 TWh per year, and the banking system even more: 263,72 TWh per year!

Green Bitcoin

The market responded quickly to the accusations. Bloomberg announced that it is entering the game "Green Bitcoin", i.e. a cryptocurrency whose transactions are verified on the blockchain by computers powered only by renewable energy.

SheldonBennett

- Green Bitoins is a new market that responds to the growing demand for environmental and social responsibility. More and more financiers and investors are willing to pay more for the "green" option - emphasizes Sheldon Bennett, CEO of DMG Blockchain Solutions Inc.

There has even been a Crypto Climate Accord initiative to decarbonise the cryptocurrency industry by 2030. It operates on a similar basis to the Paris climate agreement, but only brings together companies from the private sector. 

The price will force cheap fuel

There are still only business issues. After the recent price drops, BTC mining is no longer as profitable as it was a few weeks ago. This is what benefits those who previously invested more in mining with renewable energy. Because today's costs do not ruin their business plan, and individual miners are slowly giving up mining, because it simply ceases to be profitable. 

It is estimated that today 55-65% bitcoin it is mined thanks to renewable energy. The problem is that about half of the cryptocurrency is currently mined in Chinawhose power plants are based on cheap coal. The same is true in Iran, where also recently large amounts of BTC are being mined. 

Ecology in Bitcoin

Some cryptocurrency companies are already paying close attention to ecology, not only because of costs. In Pennsylvania, for example, there is Stronghold Digital Mining Inc., which obtains electricity from an old power plant operating on coal waste. Therefore, it makes money not only by mining cryptocurrency, but also by cleaning the state of coal heaps that are deposited as waste from steel production. Greenidge Generation Holdings, on the other hand, operates in New York State, using a power plant that has switched to natural gas. There are more and more similar solutions. You can even join cryptocurrency mining and trading via your regular desktop computer. How to do it? Sign in and act!