For many, Tesla founder Elon Musk’s announcement a year ago caused a sensation: his company would no longer accept Bitcoin, due to its massive energy consumption and heavy reliance on fossil fuels. He wasn’t wrong.
The process of mining (mining) to validate a single Bitcoin transaction leaves a greater carbon footprint of nearly 1.8 billion transactions Visa and evidence suggests that over 70% of Bitcoin’s global energy consumption is generated from non-renewable sources such as coal. As Bitcoin’s market capitalization grew from $ 70 billion to over $ 1 trillion between November 2018 and November 2021, its annual global energy consumption quadrupled, to over 200 terawatt hours (TWh).
The explosive growth of Bitcoin and other cryptocurrencies, as well as blockchain-based solutions have therefore highlighted an important problem: the growing energy consumption given by technology and its impact on our climate are threatening the progress made in recent years towards decarbonisation.
Here’s why over 250 private companies in the world they united and started the Crypto Climate Accord, an agreement that wants to decarbonise the global crypto industry by prioritizing climate and supporting the transition of the entire crypto industry to net zero greenhouse gas emissions by 2040.
Companies and citizens spanning the crypto and financial, technology, NGO, energy and climate sectors have joined the Crypto Climate Accord as supporters, involved in consulting, developing and scaling solutions to support the agreement.
As stated on the site, the Crypto Climate Accord wants to provide the cryptocurrency industry with an “open source toolbox” of technological solutions to decarbonise and demonstrate progress (on the CryptoClimate.org site there are some proposed solutions).
Although Bitcoin’s negative environmental impact was just mentioned at the United Nations Climate Change Conference (COP26) in Glasgow last November, it remains a key issue for cryptocurrency users and policy makers. In order for crypto technology to be adopted widely and in the long term, we should make serious efforts to reduce its energy consumption. This deal is a good start.
Source: Il Blog di Beppe Grillo by beppegrillo.it.
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