Elon Musk has stated that his company would not accept Bitcoin as the mining methods currently used to mine cryptocurrency are not very Eco-Friendly.
Some people says that this is a strategy to mitigate the losses that would have happened if the bitcoin price were to go down heavy or rather when it went down heavy last month.
However, that situation showed a real problem to the public, there is a need to make cryptocurrency sustainable as newer technology should change the world for the better.
How much cryptocurrency cost to the environment?
In 2020 blockchain used mor power than 159 nations (of the roughly 200 that there are in total). This pose a challenge to overcome in the next years as it was an unforeseen consequence that could be compared to the industrial revolution.
The difference between the Industrial revolution where pollution began to contaminate the sky and the crypto mining is that this time we noticed before it was too intertwined in our society. Also is the perfect time to implement a solution as legislations are still under development for the new cryptocurrency assets.
Solar power its basically what most people think about when we consider going green or eco-friendly, for that reason Genesis Mining offers numerous commercial services for powering crypto miners by cloud mining and using 100% renewable energy sources.
Regular Blockchain systems “mine” bitcoin, Ethereum and other tokens by solving cryptographic problems that are called “Proof of Work” this ads block to the blockchain but there’s a way to ad blocks by putting down a deposit or Stake that holds the systems and add blocks to the blockchain, this system is called “Proof of Stake”.
Instead of miners Proof of Stake owners of servers are called validators and it’s the system algorithm that takes their “stake” into account. This system is more accurate than proof of work and also removes competition.
However, this system is more vulnerable as it only has 21 nodes as opposed to the thousands of nodes of Ethereum. This means that if coordination occurs you can shut down the whole system.
Although, this system has many differences and difficulties Ethereum is already transitioning into this Proof of Stake System.
Risks of not turning green
If developers of altcoins keep using regular Proof of work blockchains instead of developing and updating the proof of stake system, if or when their altcoin becomes successful it will harm the environment greatly.
We are at a point of inflection were similar to Elon Musk’s effort to make Eco-Friendly cars the crypto developers have the duty to transition on another efficient way to mine their currency, because if we do not address this problem right now, the energetical costs of mining would be unsustainable for companies and that will be the downfall of cryptocurrency assets.