A lot of concerns have been raised about the effects of cryptocurrency mining, and cryptos in general, on the environment. While some of these concerns are warranted, the truth is that the vast majority of the public is completely in the dark about energy and cryptocurrencies. This means that a large portion of the information that is being published about crypto and the environment is not being understood.
The crypto world has been conscious of its impact on the environment and has done a lot of work to curb it, though there is still some way to go. Let’s take a look at some of the biggest environmental myths surrounding cryptocurrencies and the truth behind them.
All Cryptocurrencies are Bad for the Environment
This is simply not true. Not all cryptos are bad for the environment, and some cryptos have been designed specifically to preserve it. Some notable projects include Nano, which deliberately reduced the size of its blocks to reduce energy consumption, and SolarCoin, which is powered by solar energy only.
Some older coins have also made changes to their protocols to save energy. Ethereum, for instance, received a lot of criticism for consuming too much energy but recently moved to a proof-of-stake protocol that uses much less energy than its previous proof-of-work system. This makes Ethereum a great investment for environmentally conscious investors. In fact, you would be wise to keep an eye on the Ethereum current price index as this move could help boost the coin’s value in time.
If you’ve been interested in investing in cryptocurrency but have concerns about the environmental impact, and don’t know much about the technology and protocols governing it, you should check out a list of cryptocurrencies that are known for being eco-friendly and do your research on them.
A lot of people simply don’t understand why mining coins like Bitcoin costs so much energy, but that is what brings it value. Bitcoin has a real use case and can be used to perform transactions and store value. It provides a service that is similar to what the banking industry and credit cards offer, and no one questions the energy they require.
If Bitcoin didn’t cost a lot to mine, it would essentially be valueless, and this would make it largely unusable as a currency. So, instead of talking about the energy Bitcoin consumes, we should be focusing on how it’s revolutionizing our financial system and how valuable it truly is.
You also have people who think that the Bitcoin energy consumption will keep getting bigger, but that’s only because they don’t understand the cryptocurrency’s structure. There is a finite number of blocks that can be mined, and transactions don’t consume nearly as much energy as mining. So, the energy used in mining Bitcoin will eventually stabilize over time.
Now that you know more about the real effects of crypto on the environment, you can have a better idea of whether they’re a viable investment for you. Remember that our current financial system consumes a lot of energy as well, and there are some cryptos that have environmental issues at heart.