![]() ![]() An environmentally conscious person should avoid all proof-of-work crypto assets. ![]() There are more efficient technologies such as ‘proof of stake,’ although there are controversies over the details. And bitcoin’s capacity is limited by design to seven transactions per second. An increase in the price of bitcoin brings in more mining activity and thus more electricity consumption. “Bitcoin relies upon an extremely wasteful ‘proof of work’ algorithm that currently consumes the equivalent of 15 Chernobyl nuclear power plants running around the clock. As Georgetown University Associate Professor James Angel tells InvestorPlace: But Bitcoin or Ethereum mined from solar, geothermal, wind, hydropower, or battery sources are renewable green cryptos.īut there’s no getting around the fact that “proof-of-work” cryptocurrencies that utilize mining are very energy intensive, no matter where that energy comes from. For example, Bitcoin or Ethereum (CCC: ETH-USD) crypto miners that use electricity derived from coal or gas could be non-green. Keep in mind that Bitcoin mining is not non-green per se. ESG investors appear to have swayed Musk to stop accepting Bitcoin as payment for Tesla vehicles…” “A lot of electricity - used by computers ‘mining’ Bitcoin - is still generated by burning fuels such as coal and natural gas. Green Cryptos and Proof-of-Stakeīarron’s recently reported that a number of ESG-focused investors (environmental, social, governance) are concerned “ that Bitcoin is contributing to global warming.” Here is what their argument, according to Barron’s: This has led to a huge wave of demand for “green cryptos,” with investors trying to pick the next big altcoin that could usurp Bitcoin’s throne as the king of crypto. The thinking is that Bitcoin mining and other blockchain validation processes should be environmentally sustainable. Bitcoin (CCC: BTC-USD) is in the news these days, not for its economic volatility but over the cryptocurrency’s perceived environmental harm.
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