Speaking of decentralization and blockchain is the typical trend these days with the staggering amount of overnight billionaires made over the past years. But do you ever question whether cryptocurrencies are eco-friendly or not? Because sadly announcing, they’re not and investors tend to forget its climate impacts. So, we decided to uncover the shocking 2022 facts of unsustainable cryptocurrencies, and instead suggest eco-friendly coins one could invest and trade in.
Why are cryptocurrencies not eco-friendly?
Bitcoin for example has reached a flat 2,264.93kWh per one transaction which is a tremendous amount considering the 148.63kWh a 100,000 visa transaction could consume. This all goes back to a single main reason: mining.
The number and type of computers and systems used in mining to generate, operate and store cryptocurrencies creates an energy consumption level that expects to exceed the maximized pollution we are facing. That along with:
- Power needed to enroll the algorithms
- Power needed to keep engines running
- Power generated from toxic and non-renewable resources such as fossil fuels.
That said, some cryptocurrencies do have a more efficient footprint than others.
- IOTA
Some investors might be interested in the pure profit neglecting the fact that existence wouldn’t occur without a healthy surrounding, but IOTA would make a perfect choice for those looking to participate in the blockchain actionary yet ensuring some climate actions. As IOTA makes an amusing energy consumption rate which goes as low as 3.28×10^−10 when their mining is not performing any transaction.
- Dogecoin
Dogecoin is also another platform that serves as a more sustainable cryptocurrency with its well known 0.12kWh energy footprint. Unlike the market populars, Bitcoin and Ethereum spending 707 and 62.56 kWh respectively, this coin is also one of closely worked upon by Musk, who as we all know fluctuates the crypto market accordingly. Therefore, Doge would be a smart and climate supporting potentiating investment.
- Cardano
This coin, also known for being the first peer-reviewed blockchain, is a success story as it is considered reliable for digital contracts, trading, dApps and other activities. Surprisingly, it has proven to spend only 6 GWh per year while mostly relying on renewable energy which makes us critically consider such coin as per the urgency of our environmental issues.
In a nutshell..
It gets difficult to pin out which coin is greener than the other as the circumference of their eco-friendliness goes back to multiple factors. There might be coins that cause severe damages to the environment, yet miners pump fewer amounts compared to Bitcoin’s. One therefore must keep close attention to the carbon and energy footprint cryptocurrency leaves behind, and rather achieve sustainable investments than blinded profit oriented ones.
