Of the innovations we’ve seen since the internet age, you can reasonably argue that cryptocurrency is the most revolutionary
Finance has largely resisted change, but virtual currencies, born through the blockchain architecture, have broken through the wall. Indeed, the sector has not only disrupted the economy, but has left global central bankers looking for an answer.
Also, regular people love cryptocurrency assets. One major advantage it has over traditional assets like stocks and bonds is that digital markets are always trading.
There are no stops for breaks, holidays or natural disasters. Godzilla could wreak panic in the world and as long as internet access and available traders are available, virtual currencies will move forward without missing a beat.
But cryptocurrencies like Bitcoin (BTC) are not universally loved for one fundamental reason: they consume a ton of energy and BTC is by far the main culprit.
Based on information from the University of Cambridge’s Bitcoin Electricity Consumption Index, BTC miners consume around 130 terawatt hours of energy. This is about 0.6% of global electricity consumption, which is simply astounding.
As Bitcoin is becoming a store of value rather than a utilitarian cryptocurrency, you can argue that its terrible inefficiency is in line with its new purpose. However, this logic will not fly with those who think about environmental sustainability.
Cryptocurrencies and the environment
With millennials and Generation Z increasingly concerned about the health of the planet, everyone’s interest is in greening virtual currencies.
In fact, there is an initiative called Crypto Climate Accord, which aims to transfer the cryptocurrency industry (all blockchains) to 100% renewable energy.
If this proposal catches on, it could theoretically expand the base of the cryptocurrency investment industry.
Here are the blockchain reward tokens that could enjoy significant benefits:
- Ethereum (ETH)
- Bitcoin Cash (BCH)
- Litecoin (LTC)
- Monero (XMR)
- Zcash (ZEC)
- DigiByte (DGB)
- Ripple (XRP)
You can invest in any of them through click here, and other reputable platforms.
Now, I think we need to be realistic: clean cryptocurrencies are likely not going to happen anytime soon because most blockchains use proof-of-work protocols for the mining process, which is energy-intensive.
By taking small steps, however, we could change the relationship between cryptocurrency and the environment. And that could lead to legions of Earth-focused investors.
Cryptocurrency with the potential to go green: Ethereum (ETH)
Among the cryptocurrency assets to buy for those who are concerned about the environment, Ethereum is probably the most compelling case.
With its current proof-of-work architecture, ETH tokens consume a significant amount of energy. According to the article, Energy Consumption of Cryptocurrencies Beyond Bitcoin, which was republished by the US National Library of Medicine, Ethereum has a network power of 719.1 kilowatts.
Although it is only 17% of Bitcoin’s rate power, it is easily the alternative cryptocurrency (altcoin) that consumes the most energy. However, the development team behind Ethereum is constantly working to transfer its architecture to proof-of-stake.
In fact, significant progress has been made in this department, which could see ETH consume far less energy than before.
By much less, I’m talking about a 100-fold reduction in energy per transaction. Additionally, Ethereum is incredibly profitable, ranking as the second most valuable virtual currency, with a current market cap of nearly $ 279 billion.
Look, you can be all about the environment, but green people want a different kind of green too. Therefore, I consider ETH the most promising cryptocurrency if it can “clean up” its deed.