Bitcoin has been the most popular cryptocurrency for a while now. It is great for anyone looking to get into a new type of currency that will only rise in value as time passes. But many people have been quick to comment on the environmental costs of mining cryptocurrencies.
They need several computers in a large temperature-controlled space to mine these coins and use a lot of energy. Not only that, most of the time, these facilities have to be set up away from human settlements due to the noise that they make.
But Environmental, Social, and Governance standards or ESG wise, they might be much more environmentally friendly than existing industries. There is no doubt that mining these coins is not as environmentally taxing as the effects of oil and chemicals industries. On top of that, today, only 0.5% of the world’s total power is consumed by mining. Experts suggest that by 2030, this number will only rise to 1% of total power.
This is great news for people who have been concerned with the environmental costs of these new-age fintech technologies. As tech marches forward, they are making conscious decisions to be environmentally friendly and less taxing on the planet.
A sustainable future requires current and future inventions to take into account how eco-friendly they are and cryptocurrencies do just that. With the climate crisis being inevitable at this point, such DeFi systems are leading the charge when it comes to reducing their own impact on Earth and its resources.