The current global heatwave has ignited all kinds of talk about a climate emergency. This is potentially great news not only for sectors that have been directly linked to climate change, such as the oil and gas industry, but also for sectors that are only tangentially connected, such as cryptocurrencies. After all, cryptocurrencies are increasingly scrutinized by regulators for their energy consumption habits. Therefore, it is time to think about climate protection of your cryptocurrency wallet.
The best place to start is with a green and eco-friendly cryptocurrency like gimbal (Ada -6.02%), which is also one of the top 10 cryptocurrencies in the world by market capitalization. Even before the latest climate debate began, he was proud of his green blockchain and commitment to sustainability. As a result, Cardano is in a unique position to withstand a climate emergency.
A new type of regulatory risk
The cryptocurrency industry has always operated with a high degree of regulatory risk. But now he faces a new one. What happens, for example, if regulatory agencies and other government authorities start issuing climate-related executive orders to regulate, restrict or restrict certain sectors? In mid-July, for example, the European Central Bank (ECB) warned it could ban Bitcoin (BTC -3.78%) mining as part of a wider crackdown on fossil fuels. It could also introduce carbon tax on crypto transactions. The ECB likened Bitcoin to a “fossil fuel machine”, based primarily on the well-known energy consumption problem of Bitcoin.
As a result, the race is now underway to prove its green credentials and avoid the wrath of government bureaucracy. Bitcoin miners, for example, are now struggling to prove they don’t depend on fossil fuels for their energy. They certainly don’t want regulators to think Bitcoin mining has anything to do with traditional coal mining! And some cryptocurrencies are now making “green blockchain” a central part of their marketing outreach efforts. Algorandfor example, it now claims to have a carbon-negative blockchain.
Cardano is eco-responsible
By almost all criteria, Cardano is one of the most environmentally friendly and sustainable cryptocurrencies in existence. Unlike Bitcoin, which uses proof-of-work to solve complex math problems and receive new coins, Cardano is proof-of-stake, where users commit their coins for the right to complete transactions and earn more coins. . And this makes the difference. Since Cardano does not rely on energy-intensive mining operations using thousands of powerful computers, it immediately reduces its carbon footprint. In fact, some supporters of Cardano say it is now 37,500 times more energy efficient than Bitcoin.
As the ECB acknowledged when talking about banning Bitcoin, pure proof-of-stake blockchains like Cardano are the “electric vehicles” of the cryptocurrency world. The same governments that want to encourage you to buy electric cars will also want you to buy green cryptocurrencies. This argument will go a long way for cryptocurrencies like Cardano that can prove their green credentials.
Cardano against the government regulator
Finally, one of the co-founders of Cardano, Carlo Hoskinson, is one of the most well-known voices in favor of the cryptocurrency industry in Washington, DC right now. He knows exactly how the regulatory game plays out, which could prove vital if the climate emergency narrative escalates and the Biden White House begins to pass a series of executive orders. This summer, the media praised Hoskinson after his testimony before Congress, where he eloquently advocated a leaner approach to cryptocurrency regulation. This is the kind of person you want to defend against over-regulation.
Cardano and the future of Green Crypto
Overall, Cardano is one of the best games if you are looking to weatherproof your cryptocurrency wallet. Its blockchain is pure proof of participation and very energy efficient, and therefore very green. Other smaller cryptocurrencies may play their credentials green, but Cardano is one of the largest Tier 1 blockchains, with a total market capitalization of over $ 16 billion, making it a key part of the future.