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Why Cryptocurrency Massive Energy Consumption Is Extravagant?


Overblown bitcoin energy consumption is leaving an adverse impact on environmental sustainability and different opinions exist of bitcoin miner experts regarding this major concern. (Read More)

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Do you know that bitcoin mining consumes around 128.77 terawatt-hours(TWh) a year? And is it likely to fall unless the value of currency collapses? Mining for cryptocurrency consumes a massive amount of power with heavy computers and machines, leaving a destructive impact all over the globe.

Mining is the process that involves transaction verification on the blockchain without relying on a central authority. Mining computers thrive on solving complex problems, and those computations require a massive amount of energy. There is a reward with newly mined coins and transaction fees once bitcoin miners solve this problem.

According to Cambridge University, bitcoin is presently representing 0.59% of the total global energy consumption. Digiconomist estimates that network energy consumption is hitting the figure of 82.026, which is, according to the site, comparable to Chile’s energy consumption. Since the beginning of 2020, Bitcoin energy consumption has surged up to 80% amongst an immense evolution in digital currencies. 

Let’s have a deep insight into enormous energy consumption and its adverse impact on environmental sustainability. 

Massive Electricity Consumption

Cambridge university suggested that bitcoin mining consumes more electricity as compared to the electricity consumption in Argentina. According to online tools, bitcoin electricity energy consumption is more than Argentina, i.e. 121TWh, the United Arab Emirates, the Netherlands, i.e. 108.8 TWh, and presently creeping up to Norway, i.e. 122.20 TWh.

Specialized computers are connected to cryptocurrency networks to mine. Their main job is the verification of transactions that send or receive bitcoins. This process includes solving complex problems, providing an obstacle for the assurance of combating fraudulent activities. Moreover, critics claim that tesla’s decision to invest a hefty amount in bitcoin. This week, the currency value hit the figure of $48,000, and according to tesla’s announcement, it has brought up to $1.5bn bitcoin and plans to accept it as a payment method in the upcoming years. 

According to the 3rd global crypto-asset benchmark study,  28% of the total energy consumed by crypto-mining come from renewable resources. People often develop an interconnection with a massive number of miners to the network to gain immense profits. That utilizes an unexpected amount of electricity because computers are more or less continuously working to solve puzzles. It is possible to estimate how much electricity is being consumed at a time by considering energy demand for the bitcoin network and the average electricity price per kilowatt hour ($0.05). 

What Bitcoin Mining Experts Have To Say? 

Let’s have a deep insight into what bitcoin mining experts have to say about the alarming bitcoin mining energy consumption, which is currently progressing by leaps and bounds. 

#1 Dan Held

The head of growth at crypto exchange Kraken, Dan Held, proclaims that the bitcoin network has been unjustifiably aimed by those claiming that bitcoin is taking its energy consumption irrationally. 

Dan Held declared that:

“What it really boils down to when people argue that they don’t like bitcoin energy consumption is they don’t actually like bitcoin. People who are not in favour of cryptocurrencies anticipate that bitcoin mining energy consumption is wasteful.”

Dan Held emphasizes the fact that everything in this world requires energy consumption, and with technological advancements, the amount of energy required to power that technology is facing immense growth in the near future. Almost all the things in our lives consume energy. Claiming that one utilization source of energy is less wasteful than others is absolutely subjective as all utilizations have paid market rates to use that energy. 

#2 Thillainathan

Thillainathan told business insiders that more energy consumption is required as the bitcoin network grows and simultaneously the profitability of mining increases. As an operator of mines, he affirms that minors should take environmental enigma under consideration during the mining process as energy consumption can adversely impact. He expects that bitcoin mining is beneficial as bitcoin prices surge in the market, and more miners should consider utilising renewable energy resources with this upcoming revolution. 

He claimed in front of Insider that:

“Being a strong believer of bitcoin, it is an efficient way to store wealth but being an infrastructure provider, it is a dire need that we are required to become as environmentally friendly as possible.”

Thillainathan stated that the energy utilised during mining is called “dirty energy”, and unfortunately, the energy is not sustainable in the longer run. He professes that one day the government will crackdown on the utilization of coal plants. 

#3 Mason Jappa

The CEO of blockchain solutions, Mason Jappa, who is also working as an operator of some of the largest mining rigs in the United States, affirms that bitcoin miners are financially incentivized for the operation on the cheapest possible electricity, which often concludes that they utilize energy that would have become useless.

Mason Jappa tweeted that, 

“Bitcoin mining enhances energy efficiency and simultaneously reduces kWh energy rates for the populous through curtailment agreements, ceasing energy consumption during peak hours, aims at renewable energy, improves energy technology, and reduces natural gas flaring. ”   

Jappa claims that US mechanisms are powered by the process which is called “gas-flare recapturing”. A chunk of gas is flamed out in the air when natural gas is mined. Bitcoin miners prevent that to release into the air and capture that flare for energy utilization. 

Environmental Enigma 

Environmental impact is thriving in parallel to bitcoin’s emergence and prominence. There would be no doubt in saying that crypto mining requires an enormous amount of energy. According to the latest data analysis by Cambridge bitcoin energy consumption (CNBC), this energy consumption might alarm Treasury Secretary Janet Yellen. 

Yellen said that:

“It is the most incompetent method of carrying out transactions, and the amount of energy consumes during the mining process is staggering.”

Also, CAGF explained that:

“The more machines operate for mining, the more there is a possibility to solve complex problems. However, more operating machines mean more energy consumption which raises the question of miners’ cost. ” 

CCAF affirms that they do not have enough data that backs the determination of crypto solution carbon footprint. Hence the major concern is growing bitcoin mining energy consumption and the threats that it is imposing to United Nations Sustainable Development Goals in the upcoming years. Also, it is a major concern for encountering the climate crisis.

Image source: Shutterstock Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://Blockchain.News/news/why-cryptocurrency-massive-energy-consumption-is-extravagant

Blockchain

AMC Entertainment Could Include Dogecoin as a Payment Option

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Following confirmation that AMC would begin accepting Bitcoin, Ethereum, Bitcoin Cash, and Litecoin for online payment, the company’s CEO has asked the Dogecoin community if AMC should add the meme coin among the cryptocurrency options.

Almost 80% Want to Pay for a Movie Ticket With DOGE

Adam Aron, CEO of the world’s largest movie theater chain AMC Entertainment, conducted a poll via Twitter on Tuesday (September 21st, 2021) to check whether the company should accept DOGE payment. The poll, which ends on September 22nd, has garnered a lot of responses, most of them wanting AMC to include the meme crypto.

According to Aron, the Twitter survey came amid calls from members of the Dogecoin online community to add DOGE to the list of crypto options.

“I hear from many on my Twitter feed we should accept Dogecoin too. Do you think AMC should explore accepting Dogecoin?”

Before the latest development, the AMC CEO announced that the movie theater giant will accept Ethereum, Bitcoin Cash, and Litecoin by the end of 2021. This was after Aron previously revealed during an earnings call in August that customers would be able to pay for movie tickets and concessions online with bitcoin, also at the end of the year.

The poll has so far seen 110,000 votes, with 70% responding positively to the idea of DOGE payment, while 8% also agree but say they would not use the meme coin for payment. Meanwhile, 22% of the voters were not in support of the motion.


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Growing Support for Dogecoin Payment

Aron’s survey comes as the cryptocurrency market is experiencing massive price dumps, along with the global financial markets, mostly tied to the Evergrande saga. Bitcoin, which traded at $48k over the weekend, dropped to as low as $40k, with the price of other altcoins also plummeting. However, there has been a slight recovery.

Dogecoin is currently the 10th largest crypto by market capitalization and reached an all-time high (ATH) of over $0.7 back in May. Now, though, it’s down to roughly $0.2.

If AMC Entertainment goes ahead to include the meme token among the list of accepted cryptocurrencies, the movie theater giant would become the latest company to support DOGE payments. Some others who have adopted Dogecoin include American basketball team Dallas Mavericks and Newegg.

Apart from AMC’s Adam Aron, Tesla’s CEO Elon Musk also carried out a similar poll for his followers. Although many of the respondents voted in favor of the electric vehicle manufacturer including DOGE among payment options, the company is yet to make it official.

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Source: https://cryptopotato.com/amc-entertainment-could-include-dogecoin-as-a-payment-option/

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Osprey Funds launches first-ever Polygon fund in the U.S

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The cryptocurrency market is witnessing a huge dump right now, one that was triggered by a sudden meltdown in global financial markets. Even so, many, including quite a few institutional investors, remain confident in the asset class. While the likes of Bitcoin and Ethereum have often stolen the limelight, of late, others have come to the fore. The example of Polygon (MATIC) is a case in point.

Crypto-asset management firm Osprey Funds is in the news today after it introduced its fifth digital asset investment product. According to an official press release,

Osprey Funds, LLC, a premier digital asset management firm, launches its fifth investment product of the year ​​― the Osprey Polygon Trust. It is the first U.S. fund to invest exclusively in MATIC, the native token of the Polygon network.”

The product will offer exposure to MATIC, the native token used on Polygon, an Ethereum Layer-2 blockchain network. According to Osprey CEO Greg King,

“Polygon is a disruptive layer-2 technology that gains from Ethereum’s secure network while mitigating common blockchain pain points, such as high gas fees and slow transactions.”

He added,

“We’re excited to offer investors a new way to tap into the growing Ethereum market via the Osprey Polygon Trust.”

The trust is available to accredited investors with a $10,000 minimum investment. Moreover, Osprey plans to list the fund on the over-the-counter OTCQX exchange “as soon as possible and has also agreed to waive the management fee for all investors until January 2023.”

This development comes just weeks after it launched its Solana Trust. Meanwhile, it also offers products tied to Bitcoin (BTC), Polkadot’s DOT, and Algorand’s ALGO tokens.

Polygon (MATIC) has seen a lot of traction both inside, as well as outside the (crypto) community. For instance, one of the world’s largest consulting firms, Ernst & Young (EY), has now partnered with Polygon to aid its Ethereum scaling.

Moreover, despite the current market being what it is, its on-chain metrics have painted a promising picture.

Its unique addresses (no. of ETH wallets holding MATIC) as well as total wallets held over time, have both seen a parabolic incline over time.

Source: Dune Analytics

The number of unique transactions too has played a positive role behind the coin’s surge since its inception.

It won’t be a surprise to see more firms jumping on this fast-paced bandwagon. For example, Grayscale Investments has also shared its interest in incorporating the said token under its belt.

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Source: https://ambcrypto.com/osprey-funds-launches-first-ever-polygon-fund-in-the-u-s

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Argentinian Exchange Ripio Raises $50 Million in Latest Funding Round Led by DCG

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Ripio, a Latin American (Latam) exchange headquartered in Argentina, raised $50 million in its latest funding round, led by Digital Currency Group (DCG). The exchange, which has a stronghold in countries like Argentina and Brazil, will use these new funds to further expand to new countries in the area and consolidate its spot as one of the pioneering companies in the crypto exchange business.

Ripio Gets $50 Million in Series B Funding Round

Ripio, one of the biggest cryptocurrency exchanges in Latam, has raised $50 million in its series B funding round, aiming to keep growing in the region. The funding round was led by Digital Currency Group (DCG), the famous New York-based cryptocurrency venture capital firm. The round also had the participation of bitcoin investor Tim Draper, Amplo (investors of Robinhood), Marcos Galperin (CEO of Mercado Libre), and Martin Migoya (CEO of Globant).

These funds will help Ripio to keep growing its brand in Latam, after having acquired Bitcointrade, of the most recognizable exchanges in Brazil, earlier this year. The expansion plan of the exchange includes further cementing its position in current markets while also expanding to other countries like Colombia, Mexico, and Uruguay later this year. About this, Ripio’s CEO, Sebastián Serrano, stated:

This announcement is for us a natural step that allows us to continue expanding and consolidating our products in the region, with the mission of expanding access to the crypto world, building simple tools and offering quality information and resources to facilitate the path to the new digital economy.

Crypto Is Still Fresh for Latam Markets

Ripio wants to capitalize on how new cryptocurrency is to Latam markets. Outside of already-saturated cryptocurrency strongholds like Venezuela, Argentina, and Brazil, the region seems to be an especially fertile ground for new business. Juan Mendez, brand chief of Ripio, stated the company is preparing to announce the acquisition of an exchange in Colombia. Colombia is a country where some crypto firms have made inroads, but it is still in its initial stages when it comes to crypto usage and adoption.

DCG is also confident that the exchange will keep growing in the future, giving access to the cryptocurrency ecosystem to the underbanked in the region. Jason Yacavone, chief investment officer of Digital Currency Group, stated:

Ripio is an important piece of the digital asset ecosystem and its work is essential to expand access to financial products throughout South America.

What do you think about Ripio’s latest funding round? Tell us in the comments section below.

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Source: https://news.bitcoin.com/argentinian-exchange-ripio-raises-50-million-in-latest-funding-round-led-by-dcg/

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