Earlier this week, a coalition of environmental organizations joined forces to start a campaign advocating for Bitcoin’s low energy usage. The effort tries to modify bitcoin’s coding to lower energy consumption, which has steadily climbed over time.
Change for the Better
Bitcoin is, without a doubt, the most popular cryptocurrency in terms of market capitalisation. However, lawmakers, environmental groups, and some investors have criticized the company’s energy use.
The organizations will use the newly started campaign to persuade crypto dealers. This includes mining businesses, developers, and investors, that change is better for the environment. Advertisements will publish in publications by Greenpeace USA, the Environmental Working Group, and other groups. This stresses the impact of bitcoin on the environment and the need for reform.
Chris Larsen, co-founder of Ripple, is supporting the effort, but he is not representing the cryptocurrency industry. Larsen indicated that he made a $5 million contribution. Some of the commercials specifically target prominent bitcoin supporters such as Tesla CEO Elon Musk, Block founder Jack Dorsey, and Fidelity Investments CEO Abby Johnson.
Michael Brune was the Sierra Club’s former executive director. He is currently serving as a consultant to the campaign. He clarified that the campaign isn’t anti-bitcoin. Instead, it claims that climate change has reached a tipping point, according to him. In terms of market value, bitcoin, the most valuable cryptocurrency, contributes much too much to global warming.
Proof of Work Shift
This campaign tries to persuade the bitcoin community of investors and supporters to modify the network’s code. In doing so, the proof of work is no longer used. According to Brune, the adjustment might dramatically lower bitcoin’s energy consumption.
Bitcoin’s energy usage is a protection mechanism to prevent unwanted users from taking control of the network. To make the network secure, miners will have to expend a lot of processing power.
The bitcoin network consumes somewhat more energy per year, 134.9 terawatt-hours, according to the Cambridge Centre for Alternative Finance. In comparison, Norway uses 124.3 terawatt-hours each year. Bitcoin, on the other hand, uses less energy than is lost in the US during electrical transmission, according to the institute.
Meanwhile, other people are looking for ways to turn bitcoin mining into a green initiative. A Bitcoin mining plant in Slovakia generates electricity from animal and human feces. The AmityAge Mining Farm was created by the founders, Gabriel Kozak and Duan Matuska.
Matuska claims that their mining method is both environmentally benign and renewable. He claims that the methane produced by their biodegradation process aids in the smooth operation of their devices. Matuska also mentioned that renewable energy can assist speed up the adoption of innovative technologies. It also has the potential to deliver a better return on investment.