Cryptocurrency mining is an incredibly energy-intensive process that threatens the ability of governments to reduce our dependence on climate-warming fossil fuels.
The use of a Proof-of-Work (PoW) consensus mechanism in crypto has recently come under fire from climate activists. It is also widely scrutinized in the media for the massive amounts of electrical power to solve complex problems, validate transactions, and issue a new currency.
While many altcoins use Proof of Stake (PoS) consensus, which reduces electricity usage significantly, the issue of Bitcoin (BTC) remains controversial. Bitcoin mining It uses more electricity From entire countries, such as Norway and Ukraine. While the discussion continues, what can be done to make Bitcoin greener?
Many countries and companies around the world have stepped up the fight against Bitcoin due to its impact on the climate. China has banned cryptocurrency mining due to the use of fossil fuels. companies like Tesla stops accepting Bitcoin When Elon Musk realized the industry’s use of fossil fuels.
In April, environmental activist groups including Greenpeace USA, as well as the CEO and co-founder of Ripple, joined a campaign to change the Bitcoin code due to its environmental impact.
The initiative is called “Change the Code, Not the Climate,” Managed advertisements in major media and publications such as The New York TimesAnd the Politicoand the Wall Street Journal To convince the bitcoin community to modify the existing code of the network.
in July, Iran declared This will cut off the electricity supply to crypto mining operators previously allowed by the government. One hundred and eighteen cryptocurrency mining centers will be indefinitely cut off from the national grid due to a federal supply shortfall caused by seasonal spikes in electrical power demand.
current build Energy crisis in Moldova Amid the war in Ukraine affects the situation of Bitcoin, as the country proceeds to ban cryptocurrency mining activities in order to save electricity.
Kazakhstan is also affected by the energy crisis, which began in November 2021. The country has been cutting power to bitcoin miners to save electricity. Kazakhstan has so far proposed large tax increases and a regulatory burden on all mining activities in order to deter them from operating. When the country implemented these steps, Kazakhstan was the second largest mining country in the world.
In September, the White House announced that cryptocurrency mining operations in the United States are on track to consume as much energy as the country’s home computers, calling for firm steps to reduce the industry’s energy needs.
White House Office of Science and Technology Policy (OSTP) released a new study that addressed environmental concerns that industrial-scale crypto miners could strain local and federal energy infrastructures and jeopardize global climate change efforts.
Could bitcoin mining be greener? One solution to the growing demands for electricity is to look for renewable energy resources for bitcoin mining. It could be the same for miners, who are constantly on the lookout for cheap energy, which renewables often prove as well.
in 2021 Bitcoin Mining Council It has released search results for more than 32% of the current global Bitcoin network. It was found that the participants were using electricity with a sustainable energy mix of 67%. Based on this data, the total sustainable energy mix could reach 56%. This would make bitcoin mining one of the most sustainable global industries.
Some cryptocurrency mining companies are also trying to provide a more environmentally friendly solution for bitcoin mining. For example, the British owned and operated mining pool PEGA pool Reduce carbon emissions in mining by planting trees.
While the company is open to all bitcoin mining customers, regardless of their energy source, they do reward those who use renewable energy. For customers who mine using non-renewable energy, the company uses a portion of their pond fee to plant trees to help offset the carbon footprint of mining. Customers mining with renewable energy are rewarded with a 50% reduction in pool fees by 2%.
according to A recent study From the University of New Mexico at Albuquerque, bitcoin mining has roughly the same climate impact as raising cattle or burning gasoline when measured as a percentage of market cap.