Cryptocurrencies – FinanceBrokerage
The modern world is generally hard to imagine without Bitcoin and cryptocurrencies. In addition, the cryptocurrency has become inevitable. For example, large companies like Tesla, as well as individual investors, are ready to buy cryptocurrency. However, the actual carbon emissions from the electricity needed to mine Bitcoin and process its transactions are equal to the amount emitted by all of New Zealand or Argentina. This fact underscores the complexity of the problem.
Interestingly, one Bitcoin transaction equates to the carbon footprint of 735,121 Visa transactions, or 55,280 hours of YouTube. The more popular the world’s largest cryptocurrency becomes, the more resources the ecosystem consumes.
It’s worth noting that BlackRock, the world’s largest money manager, plans to evaluate all of the company’s future investments, in part in terms of how it intends to address the climate change challenge. In addition, a group called the Task Force on Climate-Related Financial Disclosures is working to create a global standard.
Bitcoin and business
As can be seen from the above information, the world’s largest cryptocurrency consumes a lot of electricity. At the same time, both the government and private organizations are working hard to help the environment.
It won’t be easy to find a perfect solution. For example, Square is one of the most outspoken advocates of Bitcoin. The company holds around 5% of its cash reserves in this cryptocurrency.
In addition, Tesla invested more than $ 1.5 billion on its balance sheet in the world’s largest cryptocurrency. As a reminder, the company wants to help reduce climate change through lower CO2 emissions. This isn’t the end of the story as other companies are also considering adding Bitcoin to their balance sheets. Interestingly, financial companies like Guggenheim Partners have already invested in this cryptocurrency.
To date, Bitcoin’s carbon problem has not had any impact on its price. As a reminder, its carbon problem is hardly a secret.
Interestingly, several companies are working on some counter-intuitive ideas to make this cryptocurrency green. For example, Seetee, an investment company involved in cryptocurrency, plans to invest in bitcoin mining operations that transfer stranded or intermittent electricity with no stable local demand to assets that can be used anywhere. This means the company plans to build wilderness and solar power plants in locations that may not be perfect for the technology. Sea tea will use the additional energy to mine the world’s largest cryptocurrency.
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