Visa Cryptocurrency

Here’s how many Visa transactions can be completed using the energy to mine one bitcoin

Here's how many Visa transactions can be completed using the energy to mine one bitcoin
Written by publishing team

The environmental issues surrounding Bitcoin are well known, but this statistic from a recent Deutsche Bank report is explosive.

According to Marion Laboure, a Deutsche Bank analyst, who is mining BTCUSD,
-0.86%
It consumes a carbon footprint larger than the nearly two billion Visa V,
-1.27%
transactions. Another incredible statistic: a single Bitcoin transaction can save energy for the average American household for 61 days.

Adding to the energy consumption of Ethereum ETHUSD,
+ 2.08%And
The two largest cryptocurrencies will rank 15th in the world, roughly equivalent to Mexico.

And while there are moves to drive cryptocurrency activity to renewable sources, about three-quarters of bitcoin’s global energy consumption is generated from non-renewable sources, says Laboure.

She notes that regulators are moving to address the environmental impact of cryptocurrencies. The European Parliament, for example, has proposed requiring companies to disclose energy consumption associated with crypto activities. Crypto Climate Accord is a private sector attempt to tackle this problem.

She suggested four ways to decarbonize cryptocurrencies. One of them may be pushing the cryptocurrency industry towards renewable sources, such as geothermal energy. El Salvador is starting to use geothermal energy from volcanoes, and another way is to introduce a carbon tax, which would hit big consumers of carbon-fueled energy.

The third idea is to switch to Proof of Stake protocol, rather than Proof of Work, to verify transactions. “Pos-of-stake consumes less power than Proof of Work, but it is less secure and centralizes mining power among users who have already mined most of the cryptocurrency,” Labory said. Ethereum moved to such a system in October. Another idea is to handle more bitcoin transactions outside the blockchain, such as the Lightning Network.

The fourth idea is the so-called pre-mining, where all tokens will be issued simultaneously. However, there are problems with this approach. “Cryptocurrency creators can store the tokens for themselves, thereby artificially raising the value of the cryptocurrency before selling their inventory. By manipulating the system, it will generate mistrust and cause extreme price volatility – a problem that has already plagued cryptocurrencies due to their lack of liquidity,” Laburi said. .

According to CoinMarketCap, the cryptocurrency market cap on Friday was $2.25 trillion.

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