Bitcoin and ecology didn’t always come together in conversations about the crypto market’s development. However, the increase in environmental awareness raises several questions about Bitcoin. Ecology brings more and more attention to society, and that’s why potential traders should learn more about crypto’s sustainability.
Bitcoin Mining: Quick Recap
Bitcoin mining is the fundamental process behind the creation and transaction verification of the well-known BTC. Miners use computer hardware to solve complex mathematical puzzles, putting new blocks into the blockchain ledger. As a reward, they get freshly mined Bitcoins and transaction fees. This process, known as proof-of-work, ensures the security and decentralization of the Bitcoin ecosystem.
And how does it affect the environment?
The Bitcoin ecology brings significant attention due to its impact on the environment. There is no surprise that these types of operations require incredibly energy-intensive operations. As the crypto market continues to grow, the Bitcoin ecology remains the prominent spot of discussions about sustainability, energy efficiency, and the future of digital currencies.
Focus On Natural Resources
First and foremost, potential opponents of this energy-consuming Bitcoin feature must know it is impossible to change in that form. Proof-of-work requires enormous amounts of energy.
Unfortunately, from an environmental point of view, most of the energy used for BTC mining comes from natural resources. It is no coincidence that the USA, China, and Kazakhstan – three countries with significant resource deposits – lead the way in mining. They generate over 70 percent of the world’s Bitcoin mining. All three countries mainly depend on fossil fuels. According to data from 2022, the mining process is responsible for over 70 million tons of CO2 every year.
As a result, BTC mining comes together with considerable carbon dioxide emission, which does not suit the planet.
How Can Bitcoin Be More Eco-Friendly?
Globalization results in tight connections between numerous financial assets. That also includes Bitcoin. Ecology and the consumption of energy can combine due to renewables. A number of companies pay increased attention to limiting natural resources.
Obviously, the most recognizable example is Tesla. Elon Musk’s gem revolutionizes the automotive industry, making the first steps into electric vehicles. The introduction of EVs is just the beginning of parting from fossil fuels, but that kind of move is essential to limit future carbon dioxide. This tech company has a worldwide range, and these distinctive cars can be spotted everywhere.
There are also companies that focus specifically on renewable energy sources to prevent upcoming climate changes. First Solar is a leading American solar technology company. Their developing technology not only provides more solar systems in the United States but also makes them more efficient.
How does it affect the mining process in the case of Bitcoin? Ecology mostly directs renewables, which may limit potential climate changes. As a result, limiting carbon dioxide emissions caused by BTC mining can be significantly reduced with the help of numerous companies worldwide.
Alternatives For Bitcoin – Ecology At The First Place
We already know that Bitcoin necessitates unbelievable electricity, mostly from natural resources. That causes gas emissions to the atmosphere and, eventually, cannot be treated as an optimistic sign for our planet.
Nevertheless, in the cryptocurrency market, multiple other alternatives can be picked. BTC is the most popular by far, but we can find something less energy-consuming for those willing to choose different assets.
Traders don’t have to look far because a perfect example of the eco-friendly and marginal impact on the environment is Ethereum. Number two in the crypto landscape in 2022 has diminished its energy consumption by over 99%! That astonishing number leads to one question.
HOW DID IT HAPPEN?
ETH still creates solid interest to investors worldwide. This rapid change doesn’t come from lower enthusiasm or significance. In September 2022, Ethereum developed its proof of work mechanism into proof of stake. That led to this remarkable downgrade of gas emissions. Discussions around changing to alternative mechanisms like proof-of-state are still ongoing during BTC discussions. The goal is obvious – to reduce the environmental footprint of Bitcoin while keeping it secure and decentralized at the same time.
Obviously, less popular cryptocurrencies do not consume as much energy as Bitcoin. Traders can take a glimpse into the proof-of-stake mechanism of Cardano and self-upgradable Tezos.
Can Bitcoin Become Environmentally Friendly?
As usual, even though it looks like a yes or no question, it’s impossible to answer with one word. Nobody can deny that at this moment, Bitcoin generates unbelievable amounts of energy, and most of it comes from natural resources. That’s not good information for everybody eager to trade Bitcoin. Ecology has to be considered more, not only by miners but also by energy providers.
That’s why Bitcoin mining might become more and more environmentally friendly. It can happen due to the higher awareness of multiple worldwide companies on renewable energy sources, including solar, wind, and water. Moreover, due to society’s pressure, the focus on sustainability can also be noticed in the crypto market.