Not so long ago, Bitcoin was regarded as nothing more than a curiosity. However, its critics could not be more wrong. Today, one Bitcoin is worth over 50,000 US dollars. Moreover, its rapid growth has grabbed the attention of numerous billionaires, with the CEO of Tesla and SpaceX, Elon Musk, leading the way.
Nevertheless, Bitcoin’s growing popularity also made it some new enemies. With climate change and energy consumption as the biggest problems of the twenty-first century, we can stumble upon a lot of criticism regarding Bitcoin mining and its effect on the environment.
This article explores the opposite path and takes a closer look at Bitcoin’s potential as an eco-friendly tool. Here is how Bitcoin can help us save the planet:
When people find out that Bitcoin uses more energy than countries like Argentina or the Netherlands, they are quick to judge and consider it a harmful and unnecessary element of our world. Nevertheless, when we dig deeper, we may find evidence supporting the opposite claim.
For example, if we compare Bitcoin exchange in Australia to legacy financial systems in this country, we can notice a few key differences. First of all, every Bitcoin transaction is direct and does not require any brokers to be added to the equation. Consequently, it eliminates a huge chunk of operating costs.
Another benefit of Bitcoin transactions is no need for printing the money. Every year, tons of paper is wasted to create banknotes that we later use. Additionally, it takes large sums of money and labor to move the newly-made banknotes from manufacturers to banks. Bitcoin successfully avoids these issues. Thus, it is much better for the environment than fiat currencies.
Thirdly, Bitcoin’s top-notch security system removes the costs of fraud services. Instead of maintaining a long line of organizations that would prevent counterfeiting, its infrastructure is so well-done that it simply does not need them.
Bitcoin has the potential to inaugurate a much-needed change in our legacy financial systems. It offers a unique approach to money transactions that can help us build a better future.
Probably the biggest argument against investing in Bitcoin is its dependence on electricity. After all, without the energy to power its servers, Bitcoin is as good as dead. Moreover, the operating costs of running these servers are seen by many as bad for the environment.
While the claim that Bitcoin needs electricity to survive is valid, it does not necessarily mean that Bitcoin cannot encourage renewable energy use. On the contrary, the most efficient Bitcoin miner today is the one using solar energy and hydro-electric. Why? Because these are some of the cheapest energy sources.
Another compelling argument for Bitcoin’s case as an eco-friendly currency comes from its potential to reduce the price of running renewable energy sources. As this study suggests, many newly-made wind farms can cut their electricity costs by investing in Bitcoin mining. As a result, Bitcoin might create an incentive for more investment in renewable energy sources.
With numerous wind farms and solar panels being built every day, Bitcoin can quickly prove to be an indispensable part of our new and greener energy systems. As such, Bitcoin mining seems to be a good thing for the environment rather than a harmful activity.
Many articles compare Bitcoin to natural resources such as oil or gold. While this comparison may look flattering at first, it should be treated as an insult.
Bitcoin is at its heart a currency, not a natural resource. Although it can be “mined”, it does not have the same qualities as coal or gas. Just like our money is not a natural resource, Bitcoin is not one as well.
As Elon Musk pointed out at his Twitter account, Bitcoin is one of many different ways to escape inconveniences that come with barter and has no real value per se. It is just data, like any other currency in the world.
Contrary to natural resources and fiat currencies, Bitcoin’s actual value lies in storing it away. It is an anti-consumerism trait that allows it to be looked upon as the currency of the future.
The reports of Bitcoin’s harmful effect on our environment seem to be exaggerated. Contrary to popular belief, Bitcoin’s energy consumption is not a world-ending threat. In fact, Bitcoin and other cryptocurrencies can be viewed as the only eco-friendly payment system in the world.
With a straightforward and secure infrastructure, Bitcoin overshadows current legacy financial systems. Additionally, its potential for being a helpful addition to wind farms makes it an optimal currency for energy systems based on renewable sources.
Hopefully, in the years to come, Bitcoin, alongside other innovations, will allow us to stop climate change and build a better future. Until then, no one can deny its positive environmental potential.
Disclaimer: This is a paid article. KryptoMoney does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products, or other materials on this page. Readers should do their own research before taking any actions related to the company. KryptoMoney is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned in the article.
Keep in mind that we may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. We try our best to keep things fair and balanced, in order to help you make the best choice for you.
