More than 50% of the cryptocurrency market plummeted, wiping out deals and investments worth hundreds of millions of dollars. However, there is always a bright side, and the recent decline in bitcoin had a major impact on how much energy Bitcoin consumed.
During the preceding two weeks, the most popular cryptocurrency fell by more than a third, according to Digiconomst, a website that tracks Bitcoin’s energy use. The annual energy consumption of Bitcoin decreased by 43% on June 23 from 204 terawatt-hours (TWh) on June 11 to 132 TWh.
Despite the drop, it’s crucial to remember that current energy use is still comparable to what Argentina uses yearly.
Bitcoins may be created via “mining,” which entails doing difficult computations on powerful computers over a lengthy period of time. More coins are accessible on the market the more time and resources are required to “mine” a new currency. Since the mining sector offers a steady source of money, many people are willing to run power-hungry gadgets for hours on end.
A new movement has been started by a group of climate activists to transform Bitcoin’s Proof-of-Work algorithm to Proof-of-Stake to minimize climate consumption. The “Change the Code, Not the Climate” campaign seeks to force Bitcoin to change its algorithm, which will greatly lessen mining competition. Ultimately, lowering the amount of CO2 emitted when mining cryptocurrencies with pricey equipment. The organization also emphasized how little energy is required for bitcoins to operate. Because they employ proof-of-stake, many more recent cryptocurrencies have minimal energy requirements or are carbon-neutral.
Even the Dogecoin Foundation is aiming to move to PoS, which might lower energy consumption by 98%. Recently, Ethereum also mentioned updating its code. But how would PoS alter patterns of energy use? Visit our page on PoS Staking for a little diversion.)