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Why is Sustainable Cryptocurrency Such a Hot Topic in GreenTech Right Now?

It seems like everyone knows at least one person that made some cash on cryptocurrency this year. Early investors in Bitcoin, Ethereum and the meme coin, “DogeCoin” will have felt the benefit in the last few months and in some cases, earned themselves a life-changing amount of money. Though it has to be said, while financially this has been great news for many people, environmentally, it’s becoming rather bad news indeed, for all of us.
cryptocurrency

To give you an idea of just how big the crypto market has become, here are a few stats:

  • Bitcoin had a market capitalization of $1072.21 billion as of February 21st, 2021.
  • The highest number of global daily bitcoin transactions in Q1 of 2021 is 367,536.
  • Coinbase, a global crypto trading platform, had 43 million users as of Q4 of 2020.

To the dismay of global investment bankers, there is seemingly no limit to the popularity of crypto in today’s market. In short, what that means is much more computing power is needed for ‘crypto mining’ and the knock-on effect for certain currencies *ahem*Bitcoin*ahem*, is an absolutely undeniable increase in the consumption of fossil fuels.

The Reason Elon Musk Dropped His Backing of Bitcoin…

Elon Musk Reaction GIF by Saturday Night Live - Find & Share on GIPHY

Appearances aren’t everything, but when you’re a sustainability business mogul like Elon Musk, it’s useful for the public to see you as… Well, actually supportive of sustainability. A quick flick through the Tesla Impact Report will show you some of the incredible work being done by the world’s most successful electric vehicle company:

“4,000,000+ metric tons of CO2 saved”

“…generated over 13 Terawatthours (TWhs) of 100% clean, emissions-free electricity.”


“…deliver reliable and emissions-free electricity to over 660 locations throughout Puerto Rico.”

I’ll happily be the first to say it: that’s bloody impressive work in the sustainability sector. This is why it seemed all the more shocking when Musk tweeted “You can now buy a Tesla with Bitcoin” in March. Elon Musk showing his support for Bitcoin meant he was also showing his support for a cryptocurrency that requires as much energy as it takes to power the whole of Argentina (Bitcoin = 127 TWh and Argentina = 121TWh). To make that stat even worse, not all of Bitcoin’s warehouse mining facilities are hydroelectric/renewable, in fact, the majority are based in China, often in regions where two-thirds of all energy is generated from coal. So what does that mean in the grand scheme of things?

Well here it is: Bitcoin creates the same amount of emissions as the entire city of London.

So, with that in mind, you can see why Mr. Musk, our sustainability mogul, might’ve wanted to pivot on his stance. On May 12th, he said:

“Cryptocurrency is a good idea on many levels and we believe it has a promising future, but this cannot come at great cost to the environment.”

Elon Musk

What Sustainable Cryptocurrencies Are Available?

Cardano Trade Crypto GIF by eToro - Find & Share on GIPHY

Please remember, this isn’t investing advice – at Hark we do IoT and sustainable technology, not trading! For advice on where to invest, look to professional trading sources. With that said, if like many out there, this has gotten you thinking about investing into greener, more environmentally friendly crypto, then there’s good news… There are plenty to choose from.

Cardano/ADA

The rise to popularity for Cardano/ADA has been a slow burn, but its popularity is steadily on the rise due to its differences in mining and the impact that has on the environment. The transaction validation model it uses is known as “proof of stake”, which is being adopted by many cryptocurrencies now, including Ethereum. These different methods of mining/transaction validation have meant the need for excessive computing power is reduced and therefore the Cardano blockchain has become a key figure in the crypto market.

EcoCoin

EcoCoin is doing plenty to promote eco-friendly activity, as the name might suggest. In fact, EcoCoin will reward sustainable work (such as planting trees) with coins. To add to that, mining EcoCoin is physically powered by renewable energy, running off of eco-friendly brands like Hydrominer, who – as you might expect – use 100% hydroelectricity.

SolarCoin

If the name didn’t give it away, SolarCoin is all about incentivising a solar-powered planet – what’s not to love about that? The coin acts as a reward for solar energy producers and is a great green coin to get behind.

How Can IoT & GreenTech Help Drive Future Sustainability in Crypto?

The fact is, there are literally thousands of green cryptocurrencies and each of them are doing their part to improve the sustainability market, raise awareness and reduce waste – which is what we love here at Hark. Due to their decentralised nature, all of them need to mine – or verify transactions – in some way or another, meaning computing power is always going to be fundamental. As it stands it doesn’t look like the crypto market is disappearing anytime soon and so beckons the question, how can we begin to facilitate more sustainable operations in the crypto market?

In my opinion, one step in the right direction is the implementation of IoT into mining facilities, allowing power consumption to be very closely monitored and moderated. At Hark we supply a plethora of waste-reducing solutions that could create a serious(ly positive) environmental impact in the world of crypto.

I hope to see the day that fossil fuel-intensive super-computing warehouses are abolished and replaced with 100% renewable, smart warehouses, but until then, if you’re planning on investing in crypto, then point your attention to the coins that are trying to save the Earth.

Read more on green technology, sustainability, IoT and energy at The Hark blog!

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