Is there a green case for crypto?
December 6, 2022 (Investorideas.com Newswire) If you've read much about finance and the economy in the last year or more, then you're going to have read plenty about crypto. Even people whose personal involvement with Bitcoin or any altcoin is limited or non-existent have formed opinions on the subject, and these opinions are mostly driven by what they have read.
And for the most part, what they read is often tilted towards the negative. Crypto is used for murky, black-market activity. Crypto is a bubble. Perhaps most prominently of all? The argument that crypto is literally dirty money - its use demands an excess of energy that's bad for the environment.
Is this true? If it is, then there's little doubt that crypto is in trouble: the campaign for Net Zero has had so much time, investment and publicity devoted to it that the crypto world, already clearly distrusted by governments and financial establishments, will simply be squeezed until it can't exist.
Of course, the reality is more nuanced than most people seem to believe - it is a reality that significant segments of the mining and transacting of Bitcoin derive from cleaner energy sources like the Icelandic geothermal energy which has, on its own, powered 8% of the Bitcoin ever mined. Other Bitcoin mining hotspots are, similarly, located in areas where renewable energy is plentiful and cheap.
Consider also that Bitcoin is just one type of crypto, and that Ethereum's own altcoin is now being produced without any meaningful use of energy at all. As a recent report from nyecasino.org illustrates, the Ethereum merge has taken place and the coin is now produced entirely on a proof-of-stake basis, making it more sustainable and more environmentally friendly than any other coin, and indeed more so than fiat currencies. The idea of a green case for crypto might be sneered at by people who take a surface-level view of things, but anyone who looks past that can see the obvious advantages that exist.
Let's not forget, also, that the energy usage of crypto is among the most flexible of any user base for energy anywhere in the world. Whether the production of electricity is at peak level or some way below, other industries - including conventional banking - will maintain a constant demand for energy. Mining of crypto coins can be, and often is, targeted at times when there is an excess of production, and deactivated when production slows.
These are the details that are often missed by analysts who take some decontextualised data and draw hasty conclusions based on it. Not only is there a green case for crypto, but as time goes on, we will become increasingly grateful for its versatility.
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