Sustainable Bitcoin: Decarbonized Industry by 2030!

Now the cryptocurrencies have entered by arrogance in everyday life, also thanks to the constantly evolving digital revolution.

But, the growing demand for cryptocurrencies has shed light on another big one problem that grips Bitcoin and the like and that is the huge amount of power that they require both for transactions and, above all, for the business of miningthat is, the extraction process, as the creation of the new tokens.

Without choosing in technical details, just know that mine 1 Bitcoin it requires very powerful computers that consume a considerable amount of energy, which when measured globally, as it did the University of Cambridge, results in a year equal to that consumed by an entire nation.

Behind this energy problem there are also part of the reasons for the recent ones bans on mining imposed by countries such as China, Kosovo and Kazakhstan.

However, this high energy consumption also brings with it the problem of environmental sustainability, that is, if Bitcoins consume a lot of energy, they also pollute a lot. Above all, considering that the extraction, that is the cryptocurrency mining activity, is generally concentrated in countries where electricity is cheap, but also comes exclusively from fossil fuels and non-renewable sources of energy.

The Crypto Climate Accord (CCA)which is inspired by the Paris climate agreement, but which works in collaboration with the Blockchain and cryptocurrency industries precisely to make the latter 100% sustainable.

What is the Crypto Climate Accord (CCA), which aims to create 100% sustainable Bitcoin?

At the head of the initiative of the Crypto Climate Accord there are three companies: the Rocky Mountain Institute, the Energy Web Foundation and the Alliance for Innovative Regulation.

They are two non-profit organizations and the last represents an international advocacy group, which deals with the implementation of fair financial systems.

The project of the Crypto Climate Accord (CCA) was born in the private sector and seeks to embrace the entire crypto community, in order to ensure that cryptocurrency transactions and mining undergo a decarbonization, that is, they are powered by renewable sources and thus reduce their environmental impact.

More than 200 companies and individuals connected to the world of cryptocurrencies, even if joining the project does not imply that the company has already decarbonised its activities, but rather that it is committed to doing so.

In fact, the objective of the Crypto Climate Accord (CCA) is to ensure that the entire cryptographic industry reaches the level of zero CO2 emissions by 2030.

We propose below the video made by Crypto Climate Accord (CCA) in order to present the initiative:

https://www.youtube.com/watch?v=OtlvnspBRCg?feature=oembed

Not all cryptocurrencies pollute the same way!

In any case, it should be borne in mind that not all cryptocurrencies they have the same environmental impact and in this sense, Bitcoins are among those that pollute the most.

When it comes to energy consumption, we always peel off Bitcoin for two reasons, specifically because they represent more than half of the entire market capitalization and then because the Blockchain they use is not the best, from the mere point of view of environmental sustainability, with the protocol Proof-to-Work (PoW).

In fact, when talking about cryptocurrencies, a series of factors, including the protocols of the Blockchain on which it operates. Put simply, there are cryptocurrencies, like the same Ethereum who is switching to Proof-to-Stake (PoS), which using a different Blockchain from a technological point of view pollute much less than BTC, because they require less energy for transactions and mining.

The ban on Bitcoin mining in China as a push towards environmental sustainability of cryptocurrencies

In any case, it must be emphasized that, from the point of view of the environmental sustainability of cryptocurrencieswe are experiencing a rather particular period and which could represent the very beginning of the phase of green transition.

This is because some countries like China, Kazakhstan and Kosovo, where energy, even though it comes entirely from fossil fuels, is cheap, they have imposed, in order to limit energy consumption, a ban on the mining of cryptocurrencies on the territory and in some cases also on transactions with them.

These were precisely the countries where, due to the low cost of bills, the highest percentage of miners of Bitcoin in the world.

So what happened now in these countries it is illegal to mine Bitcoin, the miners have moved elsewhere, choosing as their favorite destinations USA and Canada, where they do not run the risk of an imminent ban and where, in any case, energy is not as expensive as in Italy.

But USA and Canada they have a big difference compared to China, Kosovo and Kazakhstan, that is, they are far ahead in the green revolution and in the transition to the sources of renewable energywhich already partially feed the country’s needs.

Therefore, settling here i miners, in fact these will use an energy if not 100% renewable certainly much cleaner than that used for their mining activity in Cina, Kosovo or Kazakhstan.

Put simply, the ban cinece is pushing the miners towards the environmental sustainability of Bitcoinswith the advantage of making the product more attractive for large investors and therefore increasing the capital in the market and the unit price of the cryptocurrency.

Bitcoin and environmental sustainability, what lies behind the ban on cryptocurrency mining?

There are now some considerations to be made, first of all the Chinese ban it is not only motivated by environmental issues posed as official, but cryptocurrencies pose a threat to fiat currencies, such as the yuan, of which they arise as an alternative.

While it is true that Kazakhstan actually banned the mining was going through an energy crisis never seen before, with frequent blackouts, a few weeks ago a new Bitcoin mining ban was threatened by Erdogan in Turkey . This time there are not exclusively environmental concerns, but also the declared and manifest attempt by the authorities to defend the Turkish lirawhich experienced a period of high volatility.

Some time ago in Turkey, while the state currency, the Lira, due to inflation rose and fell on the markets as if it were a cryptocurrency, the nation was going through a Crypto Boom with protagonists at the center not Bitcoins but Tether, che is another cryptocurrency.

Now, Tether is one stablecoin, that is, it does not follow market trends like BTC, but is linked to the inflation of the US dollar.

Seeing in this cryptocurrency a more stable form of money compared to Turkish lirawhich rose and fell in price with respect to dollars and euros, more and more citizens decided to invest in Tether instead of the state currency.

Hence, the concerns of various governments are not alone “Environmentalists”, but there is much more behind it and they are, as always, economic interests such as those of defending the legal tender currency.

In any case, when it comes to Bitcoin and their little environmental sustainability One fundamental thing is always forgotten, namely that we are talking about a project born in 2009, when it was launched, and that is incredibly young in its progress and that will have plenty of time to catch up with the times, also from the point of view of sustainability!