Cryptocurrency mining has also incurred criticism mainly regarding the amount of electricity used by computers in the process especially in mining of Bitcoin. The mining activity of cryptocurrencies entails the solving of mathematical puzzles through computers, an activity that requires significant power and hence energy. However, this process is very energy consuming, which has led to debates regarding the emissions that cryptocurrencies produce.
Mining of Bitcoins, for instance, is said to consume as much electrical energy as can five whole nations resulting to emission of greenhouse gases. Most of the mining activities are situated in areas characterized by relatively low electricity tariffs, which are usually produced from fossil resources hence increasing the effects. To such worries, some individuals in the Cryptocurrency community are already seeking for better solutions.
An example of such is the Proof-of-Stake (PoS) that reduces energy consumption since, instead of solving complex puzzles, one has to own and “lock away” the coins. Ethereum the second-largest cryptocurrency is migrating to PoS model with its Ethereum 2. 0 upgrade. This shift emphasizes understanding and efforts made by the industry to make the impact of the mining of cryptocurrencies on the environment while keeping all the advantages of decentralized digital currencies.
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