How could cryptocurrencies save the planet?
How could cryptocurrencies save the planet?
We all heard about the negative impact of mining on the environment. But often such judgments have nothing to do with reality.
The number of people who were disappointed in Bitcoin because they did not invest in it several years ago is merely huge. They like to hate Bitcoin or all the cryptocurrencies combined, they are enthusiastically reading the news about a possible ban on cryptocurrency or another tightening of regulation.
Also, over the past few months, the "not indifferent" community has been discussing another topic related to Bitcoin - energy consumption and environmental damage.
Did you know that Iceland will use more electricity for Bitcoin mining than for supplying houses? What?
So if earlier Bitcoin's haters said that it finances criminal networks, aggravates inequality and contributes to the destructive revolution of robots, now they are all toasting that because of Bitcoin glaciers are melting, polar bears are dying, and the end of the world is coming.
It is clear to any normal person that these are evidence-free accusations. Anyway, to make you feel confident in a dispute with an inveterate bitcoin-hater, we decided to show you the theory of ecological disaster caused by cryptomania in more detail.
So, you can not and should not deny the fact that the electricity used for mining can harm the environment, like any other electricity - to send an e-mail, view Netflix all night long, fly by air, ride a car on short distances, eat steaks several times a week and strawberries in winter.
However, all these factors are not the most harmful, because the worst is...yes!..a cash payment.
To make money working, in addition to electricity, many other resources are required (unlike cryptocurrencies):
⦁ paper for the printers and other stationery;
⦁ armored vehicles for the cash transport;
⦁ paper, textiles, ink, and energy to print this money;
⦁ gasoline used by all employees who travel to and from work every day;
⦁ the cost of resources for the construction of offices;
⦁ and so on, to infinity.
With any fair and comprehensive comparison of the cost of resources between these two systems, Bitcoin is likely much more profitable!
It seems we forgot something ... Ah! COINS!
A few years ago in Canada, the authorities withdrew the smallest denomination coin from circulation, because the costs of its production were higher than the nominal value. The same applies to American and European cents, although they are still used. In addition to Canada, other countries get rid of similar coins - Sweden, Brazil and New Zealand. However, the problem with small coins is not only about the costs of their production but also the impact that they have on the environment.
The fact is that zinc ore is used for the production of these coins. The scale of the impact of the carbon footprint on the environment in the extraction, transportation, and production of these coins cannot be overemphasized. To ensure that there are ringing coins in our wallets, zinc ore must be extracted, transported to the smelter, melted down, cleaned, delivered to the mint, and then distributed to the regions of the country.
The American Council for Science and Health in 2016 published an article stating that since the beginning of the 1980s, US cents were minted for $327 billion, which is equivalent to the release of 107 million carbon footprints of dioxide. Recall that this is only in one country. And last year one of the authors in MarketWatch published information that in 2011 the US Mint bought more than 11,700 tons of zinc for making cents. And now imagine the "ecological price" of money, which is not even considered as money - it's a trifle that is constantly lying around in the car, pockets, piggy banks, etc.
Moreover, there are a few more points:
- The power consumption at mining does not depend on the growth of the number of transactions, that is, when most people start using it, the planet will not explode from overheating;
- Developers are constantly improving the throughput of networks, which will subsequently reduce power consumption;
- Bitcoin and other cryptocurrencies will allow uniting the monetary systems of different countries. And you do not have to frantically exchange rubles for a predatory rate before traveling to Thailand. The sensational December problems with Bitcoin's commission are already behind us.
As for payment by credit cards, then everything is about the same as with ordinary money, even slightly worse because the transaction by credit and even debit card is not a complete full operation. This is only a permission to pay, followed by the interaction of at least five parties - the cardholder, the bank - the card issuer, the card network, the acquiring bank and the payee. In contrast, the bitcoin-transaction can be considered executed at the moment when it enters the lock-up.
Of course, the miner who placed the transaction in the block spends a certain amount of electricity, but this is even incomparable with the amount of electricity that is necessary for the full operation of at least three large financial companies that have to work a few days to process transactions on your card. And these cards still need to be produced, delivered, etc.
Do not think that mining doesn't harm the environment, it DOES. However, if we talk about "harmful" methods of payment, Bitcoin and cryptocurrencies are precisely a step forward for meeting a greener format for the existence of money.
Therefore, if you support the idea, it's time for humanity to stop "milking" the Earth and destroying our home - then choose cryptocurrencies and Bitcoin, this is exactly a step in the right direction.
In addition to all this, there are a lot of projects on the detachment, which goals are to solve problems related to the environment.
The first "green cryptocurrencies" already successfully exist in the market. For example, GENERcoin, which can be used to buy solid biofuels or converted into bitcoin. Another currency, EnergyCoin, works for local electricity exchange among ordinary consumers. Also, there is also SolarCoins, which can be obtained by providing a certificate on the use of solar renewable energy. And many many others...
Ok, now cryptocurrencies don't seem so bad?