Dublin, Wednesday 31th October 2013: Pictured at the The Web Summit 2013, RDS. Photo by Dan Taylor/Heisenberg MediaTL;DR Breakdown
• Bitcoin consumes a lot of energy in Malaysia and Sweden.
• Elon Musk decides to invest in green cryptocurrencies.
Elon Musk’s announcement about Tesla stopping accepting payments in Bitcoin has raised many questions about the cryptocurrency. Many crypto enthusiasts wonder about the climate surrounding the token and how potentially volatile it is for Musk to get out of the game. After this announcement, the Tesla CEO seems to have chosen green cryptocurrencies as an alternative to Bitcoin.
Musk said that his company was worried about fuels used for Bitcoin mining and its transactions in a tweet. The Tesla CEO never said why he has chosen to take this measure after promoting the cryptocurrency for a long time. But he indicated that a change of opinion would be possible if cryptocurrencies become sustainable.
Green cryptocurrencies consume less energy than Bitcoin
The issue of use of energy in Bitcoin will not be limited to Musk, and other investors will also take the measure. According to unofficial figures from Cambridge, Bitcoin is using a lot of energy, mainly in Malaysia and Sweden. This energy consumption has been on the rise for the last few months with the increase in capitalization of the cryptocurrency.
The mining process in Bitcoin must be inefficient for the process to work and profit the workers. However, the overuse of energy with Bitcoin is unsustainable.
Due to this imbalance in mining with Bitcoin, the green cryptocurrencies have emerged to change the decentralized market. These altcoins can fix these energy problems consumption at abysmal levels affecting Bitcoin.
Green cryptocurrencies, like Cardano, are among the most famous with the use of its ADA token for fast transactions. ADA does not require a lot of computerized power. With this measure, guidelines are established so as not to demand too much energy from the computer.
Cardano appears to be valid to work after Musk’s announcement. While other cryptocurrencies were losing their value, ADA gained 10% in value less than one day. The other cryptocurrencies are down, including Bitcoin, which is down 8.6%.
Green cryptocurrencies and the market
Cardano announced in a tweet she would be open to working with Tesla because their goals in crypto were similar. The Cardano technology foundation is not the only one that serves under this work scheme; Litecoin is also included. It is possible that in the coming months, other green cryptocurrencies will come out to join the game.
Other green cryptocurrencies have gone further to lower the energy use of mining and promote other alternatives. The technology that drives these cryptocurrencies focuses on the clean energy of SolarCoin. The cryptocurrency rewards all solar energy facilities with new coins to produce energy.
SolarCoin could also trend as one alternative for Bitcoin. MWh rewards this cryptocurrency that solar power plants create.
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