As we move into 2023, there is a growing need for eco-friendly cryptocurrency projects. It’s due to the negative impact that traditional crypto mining and transactions have had on the environment. To put this into perspective, the energy consumption of Bitcoin as of January 2023 is estimated to be 123.12 terawatt-hours (TWh) per year. This is a little less than the annual consumption of a country like Argentina.
Most cryptocurrencies rely on proof-of-work mining, which consumes a substantial amount of electricity and thus contributes to greenhouse emissions. This is exactly what a new class of cryptos is trying to solve – eco-friendly crypto projects.
Why is cryptocurrency mining a hotly debated topic at the moment?
Cryptocurrency mining has become a hotly debated topic, both politically and internally, because of the significant amount of energy used for mining them. As the popularity and value of cryptocurrencies have increased, so has the amount of energy required for mining. Many studies have shown that cryptocurrency mining can consume as much electricity as entire nations. This has led to concerns about the environmental impact of crypto mining given the carbon footprint associated with fossil-fuel based energy sources.
The concerns have even affected the business world, as evidenced by Elon Musk’s decision to discontinue Bitcoin payments. Musk announced on his Twitter account in May 2021, that Tesla would no longer be accepting BTC as payment for EVs due to concerns over the environmental impact of Bitcoin mining. He also added that Tesla would resume accepting BTC once the mining process became more energy-efficient.
In response to the increasing awareness regarding cryptocurrencies and their effect on the planet, a new class of cryptocurrencies has emerged. These eco-friendly projects have started exploring everything from migrating to less energy-intensive validation systems to even exploring renewable energy-based mining in remote locations of the world.
Why is it important to invest in eco-friendly cryptocurrency projects?
There are various reasons to invest in eco-friendly cryptocurrencies, especially in this age of increasing environmental consciousness. For starters, eco-friendly cryptocurrencies avoid energy-intensive mining operations by using more energy-efficient consensus algorithms. Investing in them is also seen as a socially responsible investment choice. It will also help cryptocurrency projects get the nod from government institutions looking to make a change.
Top 10 eco-friendly cryptocurrencies to invest in 2023
Here are 12 of the most eco-friendly cryptocurrencies to invest in in 2023.
- Solana
- Polkadot
- Algorand
- Stellar
- Cardano
- Ethereum 2.0
- Avalanche
- Hedera hashgraph
- Tron
- Tezos
- Near Protocol
- IOTA
Let’s dive into each of these green cryptocurrencies to get familiar with their eco-friendly aspects.
The post Top Eco-Friendly Crypto Projects to Invest in 2023 appeared first on CoinGape.
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