Bitcoin is a major Cryptocurrency that dominates 40% of the cryptocurrency market share. Most times, this crypto asset determines the market’s sentiments – either bullish or bearish. Many crypto traders and enthusiasts show interest in bitcoin as it offers one of the most reliable investments they can bank on.
If crypto traders want to get more bitcoin for themselves, they use special machines to mine bitcoin. This mining operation enables them to become validators, which means they can validate transactions in a block, create transaction blocks, and mint new crypto coins.
Despite the advantages of this cryptocurrency (Bitcoin) mining, there is a significant flaw. Bitcoin mining is highly energy-intensive, which ultimately impacts the environment in unimaginable ways. This article shares more details regarding Bitcoin’s impact on the environment and how crypto users can consider alternative crypto assets to reduce their carbon footprint.
Bitcoin’s Impact on The Environment: Cause and Effect
Bitcoin mining operates on the oldest consensus mechanism in cryptocurrency, Proof-of-Work (PoW). This consensus mechanism is essential in validating transactions and minting new coins. However, for PoW to be successful, crypto users need to operate heavy machines or mining rigs that draw much power.
The dependency on heavy computational power maintains the security of the blockchain. However, it comes with a caveat – environmental disaster. It isn’t easy to calculate how much energy Bitcoin consumes in its mining operations, yet certain experts put it in perspective.
The United States generates its electricity from burning fossil fuels. However, according to the Cambridge Bitcoin Electricity Consumption Index, the most extensive bitcoin mining activity occurs in the United States, accounting for about 40% of global mining activities. Further, the study estimates that Bitcoin consumes approximately 96.61 Terawatt-hour(TWh) of electricity per year (about 0.43% of global electricity consumption). Thus, if bitcoin were ranked as a country based on its yearly energy consumption rates, it would currently be the 30th.
Since Bitcoin mining requires a high amount of electricity to mine new bitcoins, is it possible to fantom the number of fossil fuels burnt and their by-products emitted into the atmosphere? Based on digiconomist, total bitcoin carbon footprints account for 72 million tons of carbon dioxide (C02), which is almost similar to the carbon footprint of Greece.
A single bitcoin transaction can emit some 700 kilograms of C02, equivalent to watching about 130,000 hours of YouTube videos. Over the years, the rates of emissions have been alarming. Many users are forced to purchase expensive and power-hungry machines that have the sheer computational power to mine new transaction blocks and mint new bitcoins so they can earn rewards from cryptocurrency. Still, they turn a blind eye to the impact of running such mining rigs on the environment.
This environmental impact questions the sustainability of Proof-of-Work Consensus as Bitcoin has made a drawdown in price from its all-time high of about $70,000 to below $20,000.
The Future of Bitcoin Mining; Are There Alternatives to Consider?
Bitcoin cannot become environmentally friendly for specific reasons. Bitcoin’s consensus mechanism is energy-intensive and competitive, with intriguing rewards to offer, so there is no slowing down. Consequently, the possibility of the Bitcoin network switching from its high energy-intensive nature is bleak.
Experts and crypto enthusiasts can only reduce the carbon footprint of existing cryptocurrencies or ensure that newer crypto-assets do not negatively impact the environment.
Many global companies have taken their stand in going green; that is, reduction in carbon emissions. For instance, after recognizing the negative impact of mining operations on the environment, the second largest cryptocurrency (Ethereum) recently switched from Proof-of-Work to Proof of Stake consensus mechanism and dropped from a whooping 35 million tons of carbon dioxide emissions to less than 0.01 million tons.
IMPT – Offering Sustainable Solutions to Reduce Carbon Footprints
Newer cryptocurrencies are taking the initiative to become socially conscious of their environment. A sterling example is the IMPT platform, which creates a large ecosystem of connecting individuals and businesses with socially responsible brands striving to reduce their overall carbon footprints.
The vision of IMPT is to offer simple, affordable, and effective mechanisms to help each member of society combat climate change. Tens of thousands of global retailers have agreed to join IMPT with over 2 billion projects ready to make the environment safe again.
IMPT will make use of carbon credits that reduce greenhouse gas emissions. According to its whitepaper, one carbon credit equals one ton of carbon dioxide emissions. Individuals or companies can purchase these carbon credits from the platform to make up for emissions from industries, vehicles, and travel.
Carbon credits are created by certified climate action projects that reduce or capture emissions. Individuals or businesses that want to offset their emissions can purchase these credits. This initiative is an efficient tool for anyone to reduce their carbon emissions.
Furthermore, reducing carbon footprints is not only done by purchasing carbon credits but also while doing regular shopping. When users buy products from IMPT partner brands, they earn points which they can convert to carbon credits. IMPT invites users to its platform to purchase IMPT tokens and convert them to carbon credits. After conversion, these carbon credits are minted into collectible NFTs that users can list and trade on the IMPT.io marketplace.
IMPT is showcasing a large ecosystem comprising over 10,000 brands that users can collaborate with to reduce their carbon footprints. Also, the platform enables users to select from hundreds of environmental projects, ranging from clean energy generation plants, forest conservation, wind farms, and other exciting solutions.
The global climate crisis is underway, and there should be plans to cut global emissions steeply by 2030. IMPT aims to be a carbon-neutral company by providing carbon offsetting projects for individuals and businesses to partake in creating a green environment.
Bitcoin, despite its use case, is negatively impacting the environment. Thus, many existing crypto projects are switching to zero carbon emissions as a conscious effort to ensure a green environment.
IMPT is a carbon-neutral company that has partnered with thousands of brands in a carbon-offsetting program with which individuals and businesses can interact to ensure a reduced carbon footprint. This initiative offered by the IMPT platform will soon be recognized.
The first presale round is underway, which will run from October 3 to November 25. You can purchase IMPT tokens from the IMPT.io homepage at $0.018. After purchase, instructions will be made on how to convert them to carbon credits and start engaging in socially conscious projects to ensure a clean environment.