Published: 29.03.2022
Article reading time:
3 min.
Environmental groups have proposed to “transfer” Bitcoin from Proof-of-Work (PoW) to Proof-of-Stake (PoS) in order to reduce its negative impact on climate and ecology.
The Environmental Working Group, Greenpeace and other environmental organizations have launched a campaign called “Change the Code Not the Climate”. They are calling on the developers of the Bitcoin network to change its consensus method. This is due to the fact that bitcoin mining consumes a significant amount of electricity and leaves a large carbon footprint in the atmosphere, and due to the rapidly growing popularity of the first cryptocurrency in the United States, businesses using fossil fuels come to life.
Project leader and former Sierra Club CEO Michael Brune cited the example of Ethereum moving to PoS (“proof of stake”), which can reduce energy consumption by 99%. He believes that as the price of bitcoin rises and the introduction of cryptocurrencies, bitcoin developers should follow the same path or find a less energy-intensive way to mine coins. Brune noted that the US has taken the lead in the mining industry since the Chinese government cracked down on miners last year.
Brun added that coal plants that were dormant or had to close are now being restored and used for bitcoin mining. Gas processing plants, which were already becoming economically uncompetitive, are now also being used for bitcoin mining. It’s frustrating to watch, Brun says, because the United States has made the most progress in the electricity sector over the past decade.
“This situation is observed throughout the country. We will never reach our climate goals if we revive fossil fuel power plants,” said Brune.
Some mining companies are starting to use renewable energy from wind and solar. Despite their good intentions, this is not enough to counter the environmental damage from mining. The increase in fossil fuel production is outpacing the use of renewable energy for mining, and this is the main problem, the organizer of the initiative concluded. Ripple co-founder Chris Larsen echoed his point of view, stating that the only solution to this problem could be to change Bitcoin’s consensus method. Even if China, the US and the EU switch to green energy, the fossil fuel-rich states will still use their resources to mine bitcoin.
“Imagine the citizens of Saudi Arabia using oil for mining, spending only half a cent per kWh – no renewable energy sources can compare to this. Bitcoin mining can become an endless “engine” for the monetization of fossil fuels. It’s going to be a nightmare,” Larsen said.
The initiative was supported by major publications Wall Street Journal, New York Times, Marketwatch, Politico and the social network Facebook. The organizers are also calling on influencers and major investors to help promote their project.
Last week, the New York State Environmental Protection Agency approved a bill to ban the mining of cryptocurrencies using the Proof-of-Work consensus method for two years. The White House Office of Science and Technology Policy (OSTP) has also begun to study the impact of mining on the US environment and climate by organizing a public survey.
Source: Bits
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