Bitcoin Alternatives Could Provide A Green Solution To Energy-Guzzling Cryptocurrencies

The cryptocurrency bitcoin now uses up more electricity a year than the whole of Argentina, according to recent estimates from the University of Cambridge. That’s because the creation of a bitcoin, in a process called mining, is achieved by powerful computers that work night and day to decode and solve complex mathematical problems.

The energy these computers consume is unusually high. Police in the UK recently raided what they believed to be an extensive indoor marijuana-growing operation, only to discover that the huge electricity usage that had aroused their suspicions was actually coming from a bitcoin-mining setup.

Close Up of Bitcoins

Image Source: Pexels

Thousands of similar setups, around 70% of which are currently based in China, continue to demand more and more energy to mine bitcoins. This has understandably prompted environmental concerns, with Elon Musk tweeting in May 2021 that Tesla would no longer accept bitcoin as payment for its vehicles on account of its poor green credentials.

But there are thousands of other forms of cryptocurrency, collectively termed “altcoins”, which are far greener than bitcoin – and to which investors are now turning. Many of them are attempting to use less environmentally damaging technology to produce each coin, which may ultimately herald a greener future for cryptocurrencies.

Altcoins

Of the thousands of “altcoins” in the market, ethereum, solarcoin, cardano, and litecoin have shown promising potential as greener alternatives to bitcoin. Let us take the example of litecoin as an example of how they’re doing it.

Litecoins are very similar to bitcoins, except that they reportedly only require a quarter of the time to produce. Where sophisticated and powerful hardware with a colossal energy demand is needed to mine bitcoins, litecoins can be mined with standard computer hardware which requires far less electricity to run.

Video Length: 00:01:55

Other alternatives, such as solarcoin, aim to encourage real-world green behaviors. One solarcoin is allocated for every megawatt-hour that’s generated from solar technology, rewarding those who’ve invested in renewable energy.

1 2 3
View single page >> |

Disclosure: This article is republished from The Conversation under a Creative Commons license.

How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.