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Tag: Crypto Climate Accord

  • Citigroup Reports Drastic Increase In Bitcoin Power Consumption

    Citigroup Reports Drastic Increase In Bitcoin Power Consumption

    The environmental sustainability of cryptocurrencies has been long debated in the crypto community. The king of cryptocurrencies, Bitcoin, has received the most bashing for its high energy consumption with various reports being published drawing comparisons to show the critical situation that crypto world is.

    A Citigroup report has stated Bitcoin is now consuming 66 times more energy than it did in 2015. The report also warned of increased scrutiny to be faced by corporations and large-scale investors of Bitcoin for the carbon emissions.

    The COVID-19 pandemic has also put a lot of things in perspective and people are considering environment conservation to be more important than ever. The parallel rise of the cryptocurrency market means a rise in the energy consumption by the industry – which had already been debated on at length.

    However, the report also cites the energy consumption to have not increased as much as expected. The price of Bitcoin has increase more than 170 times with the energy consumption increase only being at 66x.

    A Crypto Climate Accord is also in the works as private entities also taking the situation in their own hands to curb the problem. The Accord is replicating the Paris Climate Accord and the partners aim to increase the collaboration in the whole community to move towards sustainable energy.

  • Cryptocurrency Going Green – Crypto Climate Accord

    Cryptocurrency Going Green – Crypto Climate Accord

    Cryptocurrencies have garnered a bit of a reputation when it comes to being environmental-friendly. Bitcoin – the market leader – is leading in this regard as well. The energy consumption of one transaction is the same as one household in the UK consumes for two months. While a Cambridge study places the yearly consumption of Bitcoin equal to Sweden’s annual production.

    With the increase in cryptocurrency adoption, the crypto community has decided to take steps towards making the market green. Following suit with the Paris Climate Accord, a Crypto Climate Accord has come into being. The private sector initiative has the objective of making the industry 100% renewable by the year 2030. The Accord has been founded through the partnership of AIR, RMI and Energy Web while various other major players like Web 3, Ripple, ConsenSys, CoinShares and the United Nations has also joined hands.

    The union of around 20 companies has pledged to move the industry to operate in line with the United Nation’s Framework Convention on Climate Change. Although the task is a hard one, given the decentralized nature of the market, the partners have planned to bring the whole crypto industry together and achieve their goal of a sustainable market through mutual collaboration and cooperation.

    Energy Web, AIR and RMI goals include the development of an accounting standard to measure the crypto market’s carbon emission and achieving net zero emissions from the whole industry.