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The Aspiring Answers to Bitcoin’s Enormous Energy Footprint

The Aspiring Answers to Bitcoin’s Enormous Energy FootprintFollowing a tweet from Elon Musk highlighting Tesla’s suspension of bitcoin payment acceptance due to sky-high energy needs, the industry quickly responded by highlighting the capable solutions that already address this drawback. Musk’s Comments Conveniently Ignore Reality of Blockchain Innovation Ever the commentator on all things crypto, Elon Musk took to Twitter on May 13th […]

Analyst Issues $80,000 Bitcoin Price Warning As Crypto Markets Retreat

Green energy tokens capitalize on Tesla’s decision to nix Bitcoin payments

Tesla’s decision to cease Bitcoin payments ignited a green energy debate that sent the price of low energy consumption protocols like NANO, HBAR and EWT higher.

After months of touting the benefits of Bitcoin (BTC) and blockchain technology, Tesla CEO Elon Musk shocked the crypto Twitter on May 12 by announcing that the electric car company would suspend its accepting BTC as a form of payment, citing concerns related to the energy required to mine the top cryptocurrency. 

As Tesla issued its statement, Bitcoin, Ether and a large segment of altcoins sold off sharply but there were a few projects that found clever ways to capitalize off the mayhem by tweeting about the ‘green’ nature of their networks that require only a tiny fraction of the energy required to maintain the Bitcoin network.

HBAR/USDT vs. NANO/USDT vs. EWT/USDT 1-hour chart. Source: TradingView

Three of the biggest beneficiaries of the focus on energy consumption are Hedera Hashgraph (HBAR), Nano (NANO) and Energy Web Token (EWT). Each experienced double-digit gains on May 13, while a majority of the cryptocurrency market is in the red.

HBAR/USDT

Hedera Hashgraph is a public network that was designed to be a fairer, more efficient system that seeks to overcome some of the limitations of earlier-generation blockchain platforms that struggle with slow performance and instability.

The network received support from an unlikely source on May 13 as Deepak Chopra, a well-known spiritual teacher and meditation advocate, responded directly to Musk’s tweet about discontinuing Bitcoin payments by discussing the low energy nature of the HBAR.

Further exploration of the project’s Twitter feed show a litany of posts from various community members and project developers displaying the low energy cost of the Hedera network. This activity coincides with the May 13 spike in its price from a low of $0.226 to an intraday high of $0.41.

NANO/USDT

A second protocol that has jumped on the green energy wave initiated is Nano, a lightweight cryptocurrency designed to offer secure, near-instant payments with zero fees.

The project, along with members of its community, was quick to highlight Nano’s status as “one of the leading energy-efficient and eco-friendly cryptocurrencies of 2021” which may have helped propel the tokens price 121% on May 13 from a low of $8.00 to a 3-year high at $17.71.

NANO/USDT 4-hour chart. Source: TradingView

EWT/USDT

Energy Web Token is a more obvious beneficiary of the refocus on environmental concerns as it is the operational token behind Energy Web Chain, a blockchain protocol designed to facilitate application development for the energy sector.

While the project doesn’t focus specifically on payments, the protocol’s virtual machine has the potential to revolutionize the energy sector as it is oriented toward grid operators, software developers and vendors.

The project responded to the recent announcement from Musk with the following tweet touting the protocol's ability to decarbonize the global energy sector.

EWT rallied 75% from a low of $13 late on May 12 to an intraday high at $22 before profit-taking pushed the price back below $18.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

Analyst Issues $80,000 Bitcoin Price Warning As Crypto Markets Retreat

What Is Nano? Fee-Free Crypto Asset Gains 60% Intraday

What Is Nano? Fee-Free Crypto Asset Gains 60% IntradayNano, a relatively obscure cryptocurrency, managed to catch the spotlight yesterday due to its singular transactional proposal. But, what is Nano really, and why did the token manage to skyrocket more than 60% in just a few hours? Nano and Its Fee-Free Approach Nano, a fairly unknown cryptocurrency for people not directly related to the […]

Analyst Issues $80,000 Bitcoin Price Warning As Crypto Markets Retreat

Comedian Bill Maher excoriates environmental impact of crypto

The mention of Dogecoin still got a few cheers from the socially distanced audience.

Bill Maher did not hold back criticizing cryptocurrencies from Bitcoin to Dogecoin, implying the whole space was fake and yet still required an incredible amount of real energy.

Speaking in the New Rules segment on his show Real Time with Bill Maher on Friday, the comedian said the goal of mining crypto was to “make something that is purposefully arbitrary.” Comparing the crypto space to a virtual game and speaking about mining in a seemingly derisive tone, Maher implied investing in tokens was a childish endeavor which some prominent financial figures like Warren Buffett were avoiding.

“There is something inherently not credible about creating hundreds of billions in virtual wealth with nothing ever actually being accomplished and no actual product made or service rendered,” said Maher. “Unfortunately what is real is the unfathomable amount of electricity those massive supercomputers suck up for their mining.”

He added:

“Bitcoin uses more electricity per transaction than any other method known to mankind just one uses more energy than a million visa transactions and has the same carbon footprint as 85,000 hours of watching Youtube [...] Bitcoin uses more energy than Netflix, Apple, Facebook, Microsoft and Google combined."

The comedian admitted he still doesn’t “get it” when it comes to crypto — for example, he mistakenly referred to the creator of Bitcoin (BTC) as “Satatoshi Nakamoto.” Prominent figures in the space were quick to jump on Maher’s comments, seemingly referring to the 65-year-old as someone who was out of touch with the realities of the financial world.

“I like Bill Maher a lot and he is spot on many times, but his view of crypto is one sided,” said Alex Iskold of 2048 Ventures. “There is speculation for sure but the future of money is digital, and blockchain will have many many applications, that’s for sure too.”

Though Maher’s comments on the nature of cryptocurrency as "just a Beanie Baby that runs on coal" elicited sharp criticism from some, others were not so quick to dismiss his environmental arguments. Bitcoin’s energy consumption has been significantly increasing as the network does, leading to many being concerned with the crypto asset’s carbon footprint in the years to come.

Digiconomist founder Alex de Vries recently said the environmental impact of BTC could “quickly get completely out of control if adoption increases a lot more.” However, both Twitter CEO Jack Dorsey and Tesla CEO Elon Musk have claimed that the continued adoption of Bitcoin would incentivize the use of renewable energy like solar and wind.

Analyst Issues $80,000 Bitcoin Price Warning As Crypto Markets Retreat

Beijing investigates crypto mining farms to improve energy efficiency

Bitcoin's electricity bill has been attracting the attention of regulators worldwide.

Beijing authorities are reportedly conducting inspections of crypto mining data centers to better understand their impact on energy consumption, Reuters reports Thursday.

The Beijing Municipal Bureau of Economy and Information Technology on Tuesday sent an emergency notice to the city’s data center operators asking them to report whether they are involved in mining Bitcoin (BTC) and other cryptocurrencies. The notice required data centers to report the amount of power consumed by crypto mining, the report notes.

A bureau official said that notice recipients include China’s top-three telecom operators. He noted that he was not aware of the reason behind the initiative, or whether it is part of a nationwide campaign.

The news comes amid a recovering Bitcoin hash rate, which experienced a major drop in mid-April due to massive power outages in the Chinese mining hub of Xinjiang. After tumbling to as low as 106 million terahashes per second on April 17, BTC hash rate rebounded to around 166 million TH/s on April 28.

Bitcoin hash rate over the past three months. Source: Ycharts

Cryptocurrency mining's energy consumption has been getting more attention from regulators in recent months. Yesterday, a former government official argued that crypto mining was a major driver of the energy crisis in Kyrgyzstan. In late February, authorities of the Chinese autonomous region of Inner Mongolia proposed to shut down all crypto mining facilities by the end of April to reduce energy consumption.

Analyst Issues $80,000 Bitcoin Price Warning As Crypto Markets Retreat

Former gov’t official blames crypto mining for energy crisis in Kyrgyzstan

As the Kyrgyz government discusses raising electricity tariffs again, a former official says that crypto mining is a significant driver of the ongoing energy crisis.

Amid growing concerns over the energy sector in Kyrgyzstan, a former government official has argued that cryptocurrency mining is a major factor driving the energy crisis.

Daniyar Akmatov, former director of the state investment protection organization, the Investment Promotion and Protection Agency, addressed the challenges in Kyrgyzstan’s energy sector at a roundtable in Bishkek, local news agency Tazabek reports Wednesday.

The former official said that crypto mining is causing issues for the country's energy sector alongside other factors like the devaluation of the Kyrgyz som, and poor promotion of energy investment.

“Consumption of electricity due to cryptocurrency mining has increased and this has led to an energy crisis,” Akmatov said, adding, “The som is depreciating because of the rise in the dollar exchange rate, and Kyrgyzstan is an import-dependent country and tariffs also depend on it.”

Kyrgyz President Sadyr Japarov recently proposed raising household tariffs for electricity as a way to address the ongoing energy shortage. Japarov said that local power companies are 129 billion soms ($1.5 billion) in debt, and claimed that the country’s core power infrastructure has been outdated for years due to corruption among top state officials. 

Kyrgyzstan has sought to regulate crypto mining activities in the country but is yet to adopt any concrete regulations.

Other countries have also blamed Bitcoin (BTC) mining for the energy shortages. Abkhazia has experienced an electricity crunch, reportedly due to the 625 crypto mining farms that call the small country home.

Analyst Issues $80,000 Bitcoin Price Warning As Crypto Markets Retreat

Ripple’s Chris Larsen Believes Bitcoin Dominance Could Fall Over Proof-of-Work’s Energy Consumption

Ripple’s Chris Larsen Believes Bitcoin Dominance Could Fall Over Proof-of-Work’s Energy ConsumptionRipple Labs cofounder Chris Larsen has a bone to pick with bitcoin and crypto networks that leverage proof-of-work (PoW). Larsen’s latest write-up explains that the crypto industry needs to reconsider PoW because of the effects on the environment. The Ripple executive believes that other types of consensus algorithms have been effective at being secure while […]

Analyst Issues $80,000 Bitcoin Price Warning As Crypto Markets Retreat

Asia-Pacific’s solarized digitalization agenda in pandemic times

Amid the COVID-19 pandemic, the role of digitalization has become central to achieving sustainability and lessening climate change.

The virtual 7th Asia-Pacific Climate Change Adaptation Forum was jointly hosted by the Ministry of the Environment of Japan and the Asia Pacific Adaptation Network with the theme “Enabling Resilience for All: The Critical Decade to Scale-up Action.” The forum took place in March and was held to formulate national adaptation planning for science and technology, and energy and fiscal policies that consider the interlinkages between climate change, health and biodiversity.

These nature- and ecosystem-based policies will serve as the basis for the Asia-Pacific region’s contributions to the Leaders Summit on Climate in the United States; the United Nations Biodiversity Conference (COP 15) in Kunming, China; and the United Nations Climate Change Conference (COP 26) in Glasgow, Scotland.

The Asia-Pacific region accounts for 60% of the global population (around 4.3 billion people). It has the world’s fastest-rising economies, which are supported by innovations in technology and cryptocurrency that are energy-intensive. This results in the highest growth in electricity generation, fueled predominantly (85%) by fossil fuels.

Three out of the six largest carbon dioxide-emitting countries in the world — China, India and Japan — are in the Asia-Pacific region, an area that produces about half of the world’s carbon dioxide emissions. As a result, the region is also increasingly impacted by extreme weather events.

With 2020 witnessing the COVID-19 pandemic and being the warmest year on record, there is an urgent need to decouple economic growth from greenhouse gas emissions in order to transition the Asia-Pacific region toward carbon neutrality. A few countries in the Asia-Pacific region — including Japan, South Korea, Bhutan, Fiji, the Maldives, the Marshall Islands and Nepal — have declared their aim to be carbon neutral by 2050; and China has set its target as 2060. These commitments are incorporated in their nationally determined contributions.

Related: The pandemic year ends with a tokenized carbon cap-and-trade solution

A newly released International Monetary Fund departmental paper makes fiscal policy recommendations for the region focused in three areas:

  • Increase in the use of carbon taxes
  • Increase in the ability to adapt to climate change;
  • Increase pandemic spending for greener activities.

These recommendations are aimed at addressing climate change in the Asia-Pacific region.

Turning digital technology innovation into climate action in the Asia-Pacific region

With the COVID-19 pandemic, industrial digitalization has entered a new phase of explosive development.

Houlin Zhao, secretary-general of the International Telecommunication Union — which organizes events and publishes reports to raise awareness around the role of frontier technologies with regard to the environment, climate change and the circular economy — explained:

“Today, we are faced with not one but two deep transformations. The first one, driven by emerging technologies such as artificial intelligence, blockchain, the Internet of Things, 5G and many others, is changing how governments, businesses and individuals will act in this new century. As for the second transformation, climate change, it disrupts ecosystems, jeopardizing biodiversity, food and water security and the future of life on our planet. The question for us is whether humanity can turn this digital revolution into climate action and, most importantly, whether we can do it before it is too late.”

As Zhao continues: “With more and more people coming online, more data being generated and more devices connecting to the network, the digital ecosystem’s carbon footprint is growing.”

The Asia-Pacific region boasts tremendous potential, owing to the growing prominence of mobile payments and the development of central bank digital currencies, or CBDCs, in countries such as Australia, China, India, Japan, Singapore, South Korea and others. China’s Blockchain-based Service Network is developing a global network that will support future CBDCs from multiple countries.

Related: How the digital yuan stablecoin impacts crypto in China: Experts answer

The adoption of 5G technology is a catalyst for the implementation of blockchain to improve scalability and interoperability. And China’s Huawei and ZTE; South Korea’s Samsung and LG Electronics; and Japan’s Sony and NEC are leading the way in 5G technology.

Huawei was the world’s first company to offer 5G technology and ranks number one as a global telecommunications equipment maker. However, the United States is restricting the company’s access to American technology that is key to producing modern 5G handsets and new 5G-capable mobile telecommunications infrastructure. As a result, the company has seen its market share decline outside China.

This has also had a spillover effect on blockchain technology adoption, which enables telecommunications infrastructure to meet unprecedented service-level requirements by bolstering operations, data sharing and customer identity verification, and detecting telecom fraud. According to Denian Shi, deputy chief engineer of the China Academy of Information and Communications Technology, the development of the global blockchain industry saw reduced investment/financing and cooled down during 2019 and 2020.

The role of digitalization has become central to continued economic and societal activity and to lessening the pandemic’s impact. According to recent reports, the Asia-Pacific region is expected to contribute about 19.3% of the overall global spending on blockchain technology, fueled by increased investments by the fintech sector. Integration of biometrics in smartphones amid the COVID-19 pandemic is expected to grow blockchain-based digital identity solutions by 21% annually.

The ever-increasing demand for connectivity and bandwidth by billions of devices in the region has made it important for wireless networks, blockchain platforms and computing devices to limit the total communications energy consumption and associated carbon footprint. With 5G being commercially deployed worldwide, LG Electronics and Huawei have already begun working toward launching 6G networks, which will be “50 times faster than 5G” in spectrum efficiency, positioning capabilities and mobility. Studies show that 6G could provide energy self-sustainability to the massive so-called “Internet of Everything,” with blockchain technology central to addressing significant challenges.

The world’s top solar energy adoption is in the Asia-Pacific region

The energy sector is the world’s number-one pollutant, accounting for 72% of global greenhouse gas emissions, according to the Center for Climate and Energy Solutions. With energy demands continuously increasing — pushing CO2 emissions to their highest levels in history — methods of generating large quantities of clean energy have become a survival concern for the Asia-Pacific region. As a result, the region has shifted its focus to the decarbonization of the grid and the production of electricity from renewable energy. During March alone, 65 new renewable power plant contracts were announced in the region, and nearly 80% of these plants are solar.

China leads the world as the top producer of solar energy, seeking to transform its industrial structure, economy and society with disruptive innovation in the next-generation photovoltaic module for earth and space applications. India ranks second, Japan third and Vietnam fourth in the region. Three out of these four countries are also conducting research on space-based solar power and power beaming as a solution for the region’s transition toward carbon neutrality, with Japan and China emerging as international leaders in this area.

Recently, the U.S. Naval Research Laboratory conducted its Photovoltaic Radiofrequency Antenna Module Flight Experiment, or PRAM-FX, to transform solar power into radio frequency microwave energy aboard the U.S. Space Force’s X-37B robotic space plane. According to Paul Jaffe, innovation power beaming and space solar portfolio lead at NRL, PRAM-FX is a 12-inch (30.5 centimeters) square tile that collects solar energy and converts it to microwave power, but does not beam it anywhere. Instead, the experiment gauges the performance of sunlight-to-microwave conversion.

The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.

Selva Ozelli, Esq., CPA, is an international tax attorney and certified public accountant who frequently writes about tax, legal and accounting issues for Tax Notes, Bloomberg BNA, other publications and the OECD.

Analyst Issues $80,000 Bitcoin Price Warning As Crypto Markets Retreat

Expert Believes Nuclear-Powered Crypto Mining Could Help Ukraine to Solve Energy Spending Problems

Expert Believes Nuclear-Powered Crypto Mining Could Help Ukraine to Solve Energy Spending ProblemsBitcoin mining could be a proper asset to solve one of the significant issues in the Ukrainian energy sector: spending. A financial expert praised the recent push given by Ukraine’s government to nuclear-powered crypto mining across the nation. Crypto Mining Can ‘Smooth out’ Fluctuations in Consumption, Says Expert During an interview with Inshe, Alexei Mushak, […]

Analyst Issues $80,000 Bitcoin Price Warning As Crypto Markets Retreat

Alliance of major firms aims to reduce crypto’s carbon footprint

One of the group's long-term goals involves transitioning all of the world’s blockchains to 100% renewable energy by 2025.

A group of more than 20 firms comprising crypto, finance, technology, energy, and non-government organizations has banded together to focus on the environmental impact of cryptocurrency.

In an announcement today, the Crypto Climate Accord — reportedly inspired by the 195-signatory Paris Climate Agreement — said it aims to address the "large and growing energy consumption of cryptocurrency and blockchain, and the climate impact of their energy use." Launched by nonprofits Energy Web Foundation, the Rocky Mountain Institute, and the Alliance for Innovative Regulation, the group’s partners include high-profile firms in the crypto space like blockchain-based payments company Ripple, Canadian mining firm Hut 8, digital asset investment firm CoinShares, Ethereum software company Consensys, and others.

"Industries from across the global economy are beginning to decarbonize their operations," said the group. "We can do the same in crypto. We have the opportunity to decarbonize the industry."

Among the Crypto Climate Accord’s long-term goals are transitioning all of the world’s blockchains to be powered by 100% renewable energy by the United Nations Framework Convention on Climate Change in 2025 and developing an open-source accounting standard for measuring emissions from the cryptocurrency industry. The group has also set a target for the entire crypto industry to become carbon net-zero by 2040 — this term refers to a time when human-made carbon emissions can effectively be removed from the atmosphere.

Many fintech and crypto firms have made public pledges for greener initiatives as the environmental impact of digital assets becomes more apparent. Last year, Ripple announced it would be committing to become carbon net-zero by 2030 by partnering with the Energy Web Foundation and investing in carbon-removal technologies.

"The Crypto Climate Accord recognizes that financial technologies — including blockchain and cryptocurrency — are well-positioned to lead global finance’s commitment to a sustainable future," said Ripple in response to the launch today. "Recent studies suggest that now through 2023 are the most critical years of adoption growth for crypto and we know it will be more difficult to 'reverse engineer' a systemic characteristic like sustainability the longer we wait."

Both Bitcoin (BTC) and blockchain have received praise for their roles in transforming global finance, but also criticism over the technology’s impact on climate change. The energy required to maintain the Bitcoin network is estimated to consume roughly 95.4 TWh per year, according to data from the Digiconomist’s Bitcoin Energy Consumption Index — an amount comparable to power consumption of Kazakhstan. Bitcoin also has an annual carbon footprint — 45.34 megatons of carbon dioxide — that rivals Hong Kong’s.

If "decarbonizing the cryptocurrency industry in record time" is the goal of the Crypto Climate Accord, the challenges it faces will be comparable to those of signatories to the Paris Agreement, which aims to prevent the Earth from warning more than 1.5 degrees Celsius above pre-industrial levels. Reports suggest global carbon dioxide emissions fell by 6.4% last year as many industries were slowed or stopped by the impact of the pandemic. However, this still fell short of the 7.6% cut the United Nations Environment Programme estimated was required to meet the numbers set in the Paris Agreement.

Analyst Issues $80,000 Bitcoin Price Warning As Crypto Markets Retreat