Are Green Cryptocurrencies the Future?
- Rebecca C
Elon Musk and Tesla recently announced that they will no longer be accepting Bitcoin due to its environmental impact.
However, they are not ruling out accepting it again in the future if it can be mined more sustainably.
It is still notable that banking systems have a drastically higher carbon footprint than cryptocurrency.
So, by comparison, crypto is not that bad, it is just that Tesla’s environmental stance does not align with the current impact of Bitcoin mining.
This is where green cryptocurrencies like Cardano, Nano, and Stellar.
Whilst Cardano and Stellar still need to be mined, the environmental impact they have is lesser than that of Bitcoin.
Many cryptocurrency miners are aware of the impact the energy usage involved in mining has on the environment.
It is difficult to know exactly how many miners are using renewable energy resources but the increase in popularity of greener coins has prompted cleaner energy use for mining.
For example, Iceland is one of the largest countries mining cryptocurrency, having mined 8% of the world's crypto to date.
However, almost all energy production is 100% renewable through their hydroelectricity and geothermal energy sources.
Cardano is inherently more energy-efficient than Bitcoin as it uses a ‘Proof of Stake’ consensus mechanism where those participating in the currency buy tokens to join the network.
This helps save a staggering amount of energy, with the founder of Cardano claiming that the cryptocurrency network consumes only 6 GWh of power.
The network’s token, Lumens, are used to facilitate these trades on the blockchain-based distributed ledger at a fraction of a cent and with great efficiency (which also translates to a lower carbon footprint).
The network also allows individuals and institutions to create tokens for use on the network, which has inspired some to use the network for sustainability initiatives such as investing in renewable energy.
This brings us to one of the greenest cryptos on the market right now:
Nano is one of the cryptocurrencies that isn’t mined.
Thus its environmental impact is significantly less than many other coins and tokens currently.
Nano uses block-lattice technology, which is energy efficient.
Digiconomist estimates that compared to 950 kWh for each Bitcoin transaction, Nano uses just 0.112 Wh.
It is still reliant on a Proof of Work mechanism, but the block-lattice goes beyond blockchain to create an account chain for each user on the network.
Nano is one of the cryptocurrencies we accept here at AutoCoinCars.
We chose to add it to our payment options due to its green stance, vision, and ethic as a company and crypto.
Perhaps the future of crypto is greener coins and tokens, or we need to adapt and become more like Iceland in the way we mine.
Renewable energy source adoption increasing could be the answer we’re looking for in the future of crypto.
The growth and development of the cryptocurrency market will definitely be impacted by their environmental impacts.
As a business, we are continuing to look for the correct cryptocurrencies to accept as a payment method on our site.
Do you have any green cryptocurrencies you think we should adopt?
If you’re looking to purchase a car with cryptocurrency, browse our stock today.