In recent years, Bitcoin has raised concerns about the environmental impact of cryptocurrency mining, and as the Lightning Network and other crypto innovations come to life, the time has come when they found some solutions to the question ... how does Bitcoin work when environmental impacts are mitigated?
"Crypto have a carbon intensity problem"
Paolo Natali, head of the Rocky Mountain Institute's Climate Intelligence program, said that "cryptocurrencies have a carbon intensity problem." This has been a common sentiment for several years as we learn more about the process and impacts of mining these coins. People are now becoming more involved in environmental projects, and this wall posed a threat to many crypto tokens, including bitcoin, when Elon Musk pointed them out via his Twitter page. Elon expressed his opinion on how he sees cryptocurrencies as a nice idea, but one that still leads to substantial unknown damage to the environment. Musk's comments carry weight, as his impact on tokens like DOGE has been substantial; let's just say Musk has attracted today's younger generation on what to invest in. And if you want to do it too, you can use trading platforms such as Bitcoin Revolution.
Some of the Bitcoin mining companies have started shifting to energy-efficient practices before things get too hectic. New York has proposed a ban that would stop the use of fossil fuels to mine cryptocurrencies. The more Bitcoin prices rise (the more BTC is mined), the more energy it will take to mine, and environmental activists argue that Bitcoin's use of electricity in mining adds to the global warming crisis. Some altcoins have addressed this problem directly, such as Cardano working with independent companies to address environmental impacts.
Bitcoin miners are now trying to solve the problem with more efficient ways of using energy to mine, but these efforts take time and development as the landscape grows.
The environmental status of Bitcoin in America
Nowadays, we have witnessed China's crackdown on the mining and use of bitcoin and many states in the US are trying to tap into the economic potential at stake. Here are several states that have been in the mix:
- New York: The Empire State generates a third of its energy from nuclear sources and is the third largest hydroelectric power producer in the country, according to the Energy Information Administration (EIA).
- Kentucky: Now the country's fifth largest coal producer, Kentucky has offered tax breaks to attract bitcoin miners.
- Georgia: In 2019, natural gas and nuclear power accounted for nearly three-quarters of the state's energy consumption.
- Texas: The state that consumes and produces the most electricity in America boasts cheap electricity and various laws in favor of cryptocurrencies. The EIA says it produced nearly a third of the country's wind energy in 2020.
We know the damage and potential impacts at play, but we also know that changes will come and with a huge meeting on global warming coming next month, officials will find a way to implement regulations and solutions to reduce the energy and carbon issue around. bitcoin and wider cryptocurrencies.
The world is turning in the direction that best suits humanity: As bitcoin brings new economic hope for many, will the change be a question or a solution to the ongoing battle against Bitcoin?