By Arthur Blok
Bitcoin was launched in 2009 as a new kind of money: skeptical about traditional financial institutions and instead of a central bank using a complicated programming technology. Since that moment numerous cryptocurrencies were introduced. Are cryptocurrencies a useful tool to become more sustainable?
Years later the price of Bitcoin has risen drastically, but just like many other coins it became a mainstream investment opportunity in a financial system it was meant to replace. Most of these cryptocoins turned out not to be a resposible investment.
Some important aspects to determine if a cryptocurrency is sustainable or not include: how energy-intensive is the so called mining process? How is the used energy this process being generated? How are the earnings of the cryptocurrencies being spend? This of course a dynamic process: innovations in green cryptocurrencies are being conceived every minute.
Taking Bitcoin as an example it is common knowledge that the mining of the most popular of all cryptocurrencies is a very energy-intensive procedure. It supposedly uses as much electricity as average household uses up to a week. For each bitcoin transaction miners use 215 kilowatt-hours of energy, and there are about 3,00,000 bitcoins being transacted every day.
In the wake of these energy concerns a few years ago the first ‘green’ cryptocurrencies were introduced as a more sustainable tool for investment. Using renewable sources of energy like solar, wind energy, and hydropower.
Popular green cryptocurrencies
In the dynamic land of cryptocurrencies it is easy come, easy go as some mega gains are wiped out almost as quickly as they came. What are the most popular green currencies? Below some of them in random order:
Burstcoin enables its users to connect people and companies without intermediaries in order to communicate or business. It supposedly acts as a scalable, environmentally friendly and adaptable blockchain.
While EverGreen claims to take responsible care of our environment and the world we live in by helping to raise funds for environmental green projects. It is descendant of Bitcoin. Their website claims that is uses a more energy-efficient platform for its transfers.
Transactions in EnergyCoin run on so called Proof of Stake protocol with a sustainable vision of the planets future. Staking is more energy efficient compared to mining. It is backed by Arterran Renewables.
GENERcoin is just like EnergyCoin backed by the energy outputs purchased from renewable energy generating facilities. It can be redeemed for a specific solid biofuel or traded like bitcoins.
Another popular green crypto is SolarCoin. A currency that envisions a solar-powered planet. It helps build a foundation the global energy transition by rewarding solar producers with an energy-referenced currency. It claims that its total reserves represent 97,500 Terawatt hours of solar-energy.
Dagcoin on the other hand uses another technology for mining. It saves loads of energy by using an alternative mining process called Dag-chain technology. DAG-chain transactions are conducted without any physical mining and are therefore far more energy efficient. Every transaction is validated by the transaction itself, cutting costs to network users as well as cutting down on energy consumption.
If you consider investing in green cryptocurrencies decent research is a must. Take all the above-mentioned criteria into consideration, visit various website and look at the history of a certain coin before placing your money. If you purchase without thinking, then you simply risk losing all your investment.
Source: Globally Today