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Thursday, February 2, 2023

Cryptocurrency Pollutes More Than Hong Kong And Its Fall Reduces Environmental Footprint

Energy consumption by cryptos, on the downside?

Initial enthusiasm for cryptocurrencies has waned due to an environment of uncertainty caused by the crypto-crash, threatening confidence in a sector that, although it has not stopped growing, It is also not fully understood by a large number of people. ,

According to the Cambridge Bitcoin Electricity Consumption Index (CBCEI), the total electricity needed to generate bitcoin in 2022 is set to exceed 100 terawatt hours (TWh).

But, the same graph shows that from July 11, 2022, there was a decline in the demand for energy required for their production, which has not returned to its previous level till date. While on May 10 it broke the record with a demand of 15.80 GW, on January 23 it did not exceed 11.79 GW.

In May 2021, Chinese authorities ordered measures against crypto mining and trading, and regulators banned financial institutions from offering cryptocurrency-related services. This caused many miners to choose to relocate, mainly to the United States and Kazakhstan.

but, according to A report by The Verge Therefore, efforts to regulate greenhouse gas emissions from cryptomining have intensified in the United States and Europe.

Legislators and environmental advocates in those regions began to push for greater transparency in crypto miner operations, and thanks to this, some digital currencies like Ethereum have shown that the electricity demand of digital currencies can be reduced significantly.

On September 15, 2022″ The Merge” (Fusion). It refers to the original merger of the Ethereum mainnet with an independent proof-of-stake blockchain called Blockchain, which now exists as a chain. According to the official page, Fusion reduces the energy consumption of Ethereum by 99.95%.

How are cryptocurrencies corrupted?

I l The article “How much energy does bitcoin consume?” The Harvard Business Review noted that “the majority of bitcoin’s energy consumption occurs during the mining process. Once coins are issued, the energy required to validate transactions is minimal (…) Most of the energy was used to mine bitcoin, not support transactions.

In this research from the University of New Mexico , experts conclude that there are many cases between 2016 and 2021 where bitcoin is actually more harmful to the climate than a single bitcoin. Put another way, bitcoin mining produces more weather damage than a coin’s worth. This is extremely concerning from a sustainability perspective.

However, in An interview with The Guardian Alex de Vries, a data scientist at the Dutch central bank and founder of Digiconomist, who tracks the sustainability of cryptocurrency projects, noted that there is no reason to expect a reduction in environmental impact until bitcoin collapses further. .

His research shows that an increase in the price of a cryptocurrency encourages more computing capacity to be devoted to it, but it takes a long time for that capacity to disappear after a drop in price, so the climate effect remains lingering. . “This will potentially prevent the environmental impact from increasing further,” de Vries said, “but a bitcoin price of $25,200 is sufficient to sustain an annual electricity consumption of 184 TWh.”

Furthermore, this is also because the cost of cryptocurrency mining is split into two main areas: buying hardware and paying for electricity.

When prices go up, miners buy new computers — expensive graphics cards for Ethereum or specially designed “rigs” for Bitcoin — but once they’re installed, only when electricity costs are high. Shutting them down is appropriate. more than expected income.

World Nation News Desk
World Nation News Deskhttps://worldnationnews.com/
World Nation News is a digital news portal website. Which provides important and latest breaking news updates to our audience in an effective and efficient ways, like world’s top stories, entertainment, sports, technology and much more news.
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