El Salvador goes green with Bitcoin
The new digital currency of the millennium, Bitcoin has some of the youngest, influential and most intelligent people rooting for it. Over the decade, the fate of bitcoin owners has changed rapidly. While Elon Musk's continuous involvement has often led to a fall or rise in the value of Bitcoins, there are bigger concerns that surround the process of generating and using Bitcoins. At a time when scientists, environmentalists and activists are fighting with all their might to spread awareness and protect the environment, it becomes imperative to be concerned. And if there is something more important than that, it is the need to take action for the same.
How are Bitcoin and the environment connected?
Bitcoins are generated by a process called bitcoin mining. In this process, new bitcoins are generated with the use of complex mathematical equations performed on computers. Bitcoin mining is the most essential part of sustaining the system. All of these activities have to be conducted on a computer and the use of the internet is necessary as well. The use of computers or any other digital gadget by extension means the use of electricity. A study conducted by the University of Cambridge found that the electricity consumed by the bitcoin network amounts to 121 terawatt-hours per year. Such a massive consumption has made Bitcoin take a place in the top 30 electricity consumers.
In most parts of the world, electricity is generated with the help of coal, a non-renewable resource, a fossil fuel. This is where the problem emerges. Bitcoin mining and trading require electricity which leads to the depletion of important energy resources. Such an impact on nature at a time when resources are scarce causes worry among climate activists and people associated with the conservation of the environment.
How is El Salvador planning to deal with it?
The central American country of El Salvador became the first country which authorized Bitcoin as a legal tender. Such a huge step has made much news in the international market and has been extremely positive news for bitcoin holders around the world.
In a recent announcement, the President of El Salvator Nayib Bukele has said that the country will now use thermal power for the process of bitcoin mining. Such a decision has been the result of extensive research and analysis by scientists all over the world on the impact of Bitcoin on the environment. The decision to go green on Bitcoin production has attracted attention and has been appreciated as well. Bukele said that he has instructed the LaGeoSV President to design a plan which can facilitate Bitcoin-related activities in an environment-friendly way. The LaGeoSV is a state-owned geothermal energy company that will derive power from volcanoes to generate electricity that will be used for Bitcoin mining and Trading.
Why is thinking about the environment important to make Bitcoin more sustainable?
There are several reasons why it is important to take a sustainable approach towards Bitcoin-related activities such as mining and Official website. The environmental concern can impact the sustenance of cryptocurrency as well. Tesla founder Elon Musk voiced his concern about the environmental impact of Bitcoin and the company stopped accepting payment in cryptocurrency recently. This implies the importance of having an environmental perspective when it comes to Bitcoin.
The use of renewable sources of energy, as pioneered by El Salvador, is one of the many solutions that can help in reducing the damage that bitcoin mining has on the environment. The decision of the country's President has been applauded by the international community and is seen as a way to deal with the crisis.
Conclusion
Bitcoin is the future. Millions across the globe have a vested interest in cryptocurrency. The only way to safeguard the interest of the people is to take a stand to reduce the carbon footprint while adopting a strategy to reduce the use of fossil fuels and practice conservation for future generations.