You want clean Bitcoin? Here’s how it can happen
Cryptocurrencies have always been controversial. Some people argue about whether or not they should be valuable. Others debate their ethics and how they excel for criminal activities. In the end, even the experts consider whether or not they will be dropped.
That Gives Us Clean You might think that the word “clean” in its name refers to legitimacy – not from criminal activity. However, it is related to Bitcoin’s mining and their energy consumption.
Are you interested in buying clean Bitcoin? Are you interested in the environment and want to do something about it? That’s what you’ll learn today.
What is clean Bitcoin?
Many people believe that Bitcoin is better than fiat money for the environment. After all, it’s purely digital, so printing paper and scaling shouldn’t be a problem. The reality, however, is more complicated than that suggests.
Bitcoin mining – that’s how people create new coins – requires significant electrical energy. This consumption has led to doubts about Bitcoin’s environmental impact.
Clean Bitcoin refers to Bitcoin mined using sustainable methods: solar energy, hydroelectricity, and anything that doesn’t rely on coal and similar fuels.
What do experts think about clean Bitcoin?
Kevin O’Leary, the famous investor, recently stated that he is only buying clean Bitcoin. He said that, for him, there exist two types of Bitcoin: clean money and blood money. He focuses only on the old.
Although he did not mention where he bought this Bitcoin, many countries produce Bitcoin through sustainable approaches.
O’Leary was once famously known as a Bitcoin detractor. He is a recent investor and he mentioned that he plans to dedicate 3% of his portfolio to Bitcoin. However, he won’t buy anything before finding out where, when, and how it was harvested.
Cleaning Vs. Bitcoin “blood”
As we mentioned, clean Bitcoin comes from sustainable mining. Bitcoin “blood” comes from harmful mining activities, often relying on coal for energy.
In this context, China has attracted a lot of attention, mainly because it does not have enough environmental measures.
Cryptocurrencies and the environment
Institutions tend to restrict certain assets depending on their compliance with environmental considerations. If Bitcoin becomes an ecological risk, it could harm investors.
These concerns have become more prominent over time. Bitcoin mined in China and sanctioned countries could become a red flag for investors, prompting them to switch to using Bitcoin or clean altcoins.
Companies are starting to move towards clean cryptocurrencies
Argo Blockchain and DMG Blockchain Solutions have announced clean Bitcoin mining pools. Companies providing mining and blockchain solutions, respectively. Their project will use hydroelectric energy to create Bitcoin.
It is a venture that addresses growing concerns about Bitcoin’s carbon footprint. This is not the only attempt of its kind. Other companies have come up with investment initiatives for using clean energy in Bitcoin mining.
How will it work?
The venture is the first mining pool for Bitcoin that requires miners to demonstrate that they are using green energy resources for the mission. From the claims, they will likely implement a method of verification for the job.
Today, there are lots of clean energy sources: solar, wind, hydroelectric, nuclear and more. It is easier for miners to access enough energy without affecting the environment.
However, most teams are not interested in the type of energy their miners use. Most of these groups are in China, fueling O’Leary’s claims about the amount of Bitcoin blood coming from the country. Terra Pool (NASDAQ :), the new venture, will require its miners to follow ecological principles.
What does that mean?
While most miners don’t use renewable energy for their operations, there is a huge incentive for clean Bitcoin. The cryptocurrency market continues to grow and attract new investors. According to experts, this growth requires sustainability.
If the environment becomes a priority for most investors, then most miners will need to switch to clean Bitcoin. Unsustainable mining can leave substantial mining pools unprofitable. Switching to sustainable mining can turn out to be a worthwhile long-term investment.
On the Flipside
- Finding clean Bitcoin can be a challenge for most investors. With China mining the bulk of Bitcoin, clean Bitcoin can be considered rare.
- Ecological mining pools may face verification issues with their miners, mainly if they can provide false evidence.
- It can take a while for sustainable sources of energy to become the standard of exploitation. Until then, the price of clean Bitcoin is likely to soar.
- Likewise, demand for unsustainable Bitcoin can plummet, disrupting transactions.