The energy footprint of bitcoin mining equates to about two billion transactions with VISA, says Deutsche Bank analyst Marion Laboure.
According to marketwatch, the Deutsche Bank report includes another impressive statistic, as it states that mining a bitcoin could meet the energy needs of the average US household for 61 days.
If we add the energy consumed to extract Ethereum, based on the total energy consumed by the two largest cryptocurrencies, it would be the 15th largest consumer in the world, with consumption reaching that of the whole of Mexico.
Although moves have been made to boost cryptocurrency activity in renewables, about three-quarters of bitcoin’s global energy consumption is currently generated from non-renewable sources, Laboure said.
Laboure notes that regulators are moving to address the environmental impact of mining. On the one hand, the European Parliament has proposed that companies be required to report energy consumption related to mining activities, while the Crypto Climate Accord is a private sector effort to address the issue.
She even suggests 4 solutions that could lead to reducing the energy footprint of bitcoin mining:
– To push the cryptocurrency industry towards renewable sources.
– To introduce an “energy tax”.
Switching from the Proof of Work protocol (a “tricky puzzle” that Bitcoin miners have to solve in order to gain the right to verify transactions) to the easiest Proof of Stake proof-of-work system, as Ethereum.
– Pre-mining, where all tokens will be given at once, but there are several problems with this practice.
It should be noted that according to CoinMarketCap, the total value of the cryptocurrency market is 2.25 trillion. dollars.
Read also:
.
Source From: Capital
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
