This is the future of cryptocurrencies, companies involved in cryptocurrency mining and production have reaffirmed their shared commitment to a sustainable energy transition towards a renewable energy future.
A commitment to greener cryptocurrencies
Many companies and agglomerations believe that greener technologies are the way forward to ensure the growth of these digital assets. Companies such as DMG Blockchain Solutions and Argo Blockchain announced a few days ago that they will be joining the CCA (Crypto Climate Accord). The goal is to ensure an environmentally friendly and sustainable future for cryptocurrencies.
The two companies reaffirmed their commitment to more clearly outline the goals of the CCA; while introducing new technologies that will increase the transparency of renewable energy supply in cryptocurrency mining.
How much energy does cryptocurrency mining consume?
Currently, according to research conducted by the Centre for Alternative Finance (CCAF) at the University of Cambridge; bitcoin miners account for nearly 0.5% of global energy consumption.
At first glance, these figures seem low, but in reality the entire grid consumes more electricity than some modern industrial countries such as Finland, Belgium or Chile. This consumption in turn could cover the electricity needs of some of the most important universities for more than 500 years,
In this sense, the cryptocurrency industry has great potential to decarbonize this growing use of technology. That’s why the launch of the CCA was announced in April, with 20 companies; NGOs and key industry players signing a commitment to switch to renewable energy. So far, more than 40 players have joined the initiative.
DMG Blockchain Solutions CEO Sheldon Bennett introduced himself; and noted that the company’s mission is to create greater trust and transparency in the market.
“Partnering with Crypto Climate Accord and Argo allows us to put these values into practice and move towards a more sustainable industry. Together, we can finally put the wheels in motion for the cryptocurrency industry to focus on renewable energy,” he said.
For his part, Argo CEO Peter Wall said the deal will help lay the groundwork for a greener industry.
“As more and more data emerges about the environmental impact of bitcoin and bitcoin mining; it is imperative that the industry takes real, tangible action,” he said.
Companies and future of cryptocurrencies that are part of the agreement
So far, more than 20 companies and individuals from the cryptocurrency, finance, technology; energy, and climate sectors, as well as NGOs, have signed the agreement as an initial endorsement.
UN climate change conference in the UK in 2021 on cryptocurrencies:
Consensys, Web3 Foundation, Hut8, RSG, XRP Ledger Foundation, All Infra, Water Current, Wavelength, Decarbbitcoin, Engie, Ptt, Initiative D-rec, Acciona, Exaion, GBBC, Circulor, SP Group, South Pole, Tom Steyer, Palm, Co2Ken, RecDeFi.
The current environmental problems of the future of cryptocurrencies
High consumption is the reason Tesla no longer accepts cryptocurrencies as currency, CEO Elon Musk explained in a Twitter post.
“We are concerned about the rapidly increasing use of fossil fuels in bitcoin mining and transactions, especially coal, which has the worst emissions,” Musk said on May 13.
He added that while cryptocurrencies are a “good idea” and have a “promising” future; it should not come at the expense of the environment.
According to a recent Bank of America report, much of the mining is taking place in emerging markets, particularly China; which accounts for two-thirds of global mining, even though the country recently banned both mining and payments with bitcoins. This is followed by the United States, Russia, Kazakhstan, Malaysia and Iran.