The big names in the crypto world like Square, Ark Investment, Coinbase, Binance, and Gryphon Digital Marketing have joined forces to introduce a new resolution for Bitcoin miners. Janet Yellen, the US secretary for Treasury under the Biden administration, called out Bitcoin’s questionable carbon footprint. Since then, the flagship cryptocurrency has gone down and experienced critical setbacks. Some crypto insiders like Chris Larson claimed that if Bitcoin did not switch to proof of stake like Ethereum, it would be taken out for good.
These remarks might or might not hold water; nevertheless, the Bitcoin mining community seems to work towards a new goal. Many miners have signed up for the Crypto Climate Accord program and are working towards making the mining rigs into net-zero emissions. Cathie Wood, CEO of the Ark Investment, told the media in a recent interview that promoting sustainable energy projects through Bitcoin mining can kill two birds with one stone.
The Difference between Bad Media and Real Facts related to Bitcoin Carbon Emissions
Cryptocurrencies are a relatively new form of investment and monetary structure. The more conventional types of investments like money transfers and gold have been around for decades and hundreds of years in comparison. Any bad media would be enough to mold the fragile concept of Bitcoin in the minds of people. The study conducted by Cambridge Center indicates that proof of work mining takes up about 113 terawatt-hours per year.
Another research conducted by the same source shows that gold mining operations take up more than 240 TWh that is more than 80% than Bitcoin. On the other hand, a report published by Galaxy Digital claims that the energy grid dedicated for the centralized financial services for banks takes up about 260 TWh per year. This study only accounted for 100 international banks and divided their energy grid into four categories, i.e., ATMs, Data storage facilities, Credit and debit card servers, and branch banking units.
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While these new findings suggest that Bitcoin mining operations are already more efficient than the previous trading infrastructures, the fact of the matter is that it is not enough. The main aim of the Bitcoin miners is to comply with the Crypto Climate Accord and become 100% fossil fuel independent by 2030. During this time, the Bitcoin mining community is also aiming to do better and create enough energy that could be exported to other projects.
Looking at the facts and figures, it is clear that Bitcoin miners depend on sustainable energy sources for about 40%. On the other hand, federal institutions and banks are behind in their pursuits to depend on green energy generation sources with only 20%. All the while, New York State has passed a bill to take out crypto mining rigs without any discrimination. These types of rigid rules can destroy a profitable industry. The exemplary state of Wyoming has introduced about 22 regulations for cryptocurrencies since 2017 that allowed the crypto and government authorities to develop a symbiotic relationship.