Cryptocurrency has completely changed the way we view finance in a little over a decade. Digital assets play an integral role in modern investing. In fact, close to one-fifth of American adults now hold Bitcoin, with that figure set to grow. The industry is evolving at a rapid pace, and it should be no surprise that the sector increasingly focuses on going green.
As an investor, you need to understand the full situation regarding any proposed investment. This simple guide will answer your questions, such as;
- What is ‘green’ cryptocurrency?
- Why should investors care about green investments?
- How can Bitcoin mining become efficient?
- Can digital assets become even greener in the years to come?
What is ‘green’ cryptocurrency?
Green cryptocurrency is, in short, cryptocurrency that is mined and managed in an energy-efficient way. It is natural for new investors to assume that digital assets consume large amounts of energy.
Bitcoin miners use powerful hardware necessitated by the proof of work (PoW). Miners waste energy when their systems do not solve complex mathematical algorithms too. However, Bitcoin mining uses less energy than most people think. The energy usage is less than video gaming or festive lights.
Green crypto is ultimately a term that relates to environmentally friendly digital assets, practices, and mining habits. Investors should care for many reasons, including but not limited to:
- Green cryptocurrency helps protect the planet,
- Green crypto is more likely to see long-term growth as people continue to adopt eco-friendly lifestyles,
- The digital assets supported by green practices are already at the forefront of the crypto arena.
How can Bitcoin mining support green cryptocurrency?
Although Bitcoin, the world’s number one digital asset, has been previously seen as not sustainable and thought to consume a large amount of energy, Bitcoin mining can be energy efficient.
The Global Bitcoin Mining Data Review Q3 2021 shows that the industry uses sustainable energy to power 57% of its operations. The sector’s sustainable energy mix levels are higher than any country’s current rate. Computing hardware has become significantly more efficient compared to the situation just over a decade ago when crypto was first capturing the attention of finance experts.
Companies like Mawson Inc. help take efficiency to new heights with purpose-built wholesale hosting solutions. High-Performance Computing (HPC) and Modular Data Centre (MDC) technology both improve efficiency, which subsequently reduces energy waste for greener practices. Large-scale facilities play a key role in developing sustainable practices too.
The changing face of green cryptocurrency
People care about making sustainable investments – this alone underlines why green crypto is the future and why Bitcoin miners and infrastructure providers must take note.
Forecasts have predicted a 300% improvement in efficiency over the next four years. Other industries will need to follow suit. As such, supporting green crypto will actively enhance the environmental benefits across multiple business sectors.
You can find out more about the current state of green crypto and its sustainable practices, along with its future, at Mawson.