Cryptocurrency News

The bitcoin energy problem speaks to a broader challenge for the future of the Internet

From the perspective of today’s perspective on bitcoin (B T c) Excessive energy consumption, it may come as a surprise to know that Greenpeace, an international non-governmental environmental organization, was one of its first adopters.

Back in 2014, the organization set up a facility for Accepting bitcoin donations, Yet this enthusiasm has cooled now, as climate risks posed by proof-of-work coins such as bitcoin have received widespread attention. Last week, news broke that Greenpeace Had decided to abolish the facility, In the era of rapid global warming it has to “no longer be valid”.

Much of this concern is exacerbated by the fact that energy needs had increased with this year’s unprecedented cryptocurrency bull market: skyrocketing prices doubled the Bitcoin network’s energy consumption by March this year. Study From Vrije Universiteit Amsterdam.

In correspondence with Cointegraf, Greenpeace USA media director Travis Nichols said that as Bitcoin’s environmental profile became clear to the organization, Greenpeace actually decided to cancel its facility, despite the fact that the BTC charity The number of was not significant. Nichols referenced bitcoin’s energy problem in a broader perspective on global digital infrastructure, writing:

“The vast and ever-increasing amount of energy required to drive bitcoin is largely due to the specialized technology used to sustain this digital currency, but it also points to a broader challenge for the future of the Internet Is. As web services grow and become more complex, the demand for computing power will continue to increase over the next few years, and will require a great deal of energy. ”

Nichols noted that only one-fifth of the electricity used in the world’s data centers comes from renewable sources – something that would have to be changed rapidly if the role in supporting the expansion and economic growth of the Internet was made sustainable.

To push back against the rise of bitcoin Reputation as “dirty currency”,Many industry participants have tried to draw attention to the fact that its energy needs still need the global banking system and even the gold market. recently Galaxy Digital’s report compared these total figures In addition to showing that bitcoin still consumes less, the banking industry’s data on electricity consumption is significantly less transparent than the data available for bitcoin.

However, analysts outside the industry counter this by emphasizing relative, not total, data. a blog post The note, published today from the London School of Economics, states that “each individual bitcoin transaction uses the same amount of power as a 778,988 credit card transaction” and has the “same carbon footprint as processing 1,218,903 transactions”.

Nichols’ bottom line was that the Internet, like all infrastructure, “would need to be powered by clean energy sources that help, not hinder, the critical challenge of tackling climate change.” Advocates of bitcoin potential Allegedly encouraging the adoption of renewable energy Have to prove your case, faster, or risk Veteran cryptocurrency is being “left behind”“As the world” Enters endgame Of Climate politics.