Cryptos that use PoW, such as Bitcoin, are often targeted as being linked to an increase in carbon emissions. This is because the “mining” process to mine new Bitcoin (BTC) requires a significant amount of computational power typically generated by burning fossil fuels. As the value of Bitcoin and other cryptocurrencies has increased in recent years, so has the amount of energy consumed in the mining process. Although the energy used in crypto mining is less than the energy used by ATMs globally, the media was more likely to reflect that Bitcoin uses a lot of energy and pollutes the environment.
To address this issue, some developers are trying to create new cryptocurrencies designed to be more energy efficient, while others are exploring the use of renewable energy sources to power the mining process. According to recent research, the carbon emission rates of some crypto assets have decreased considerably. The record is at 100 percent with Ethereum, which has completely cut itself off from PoW.
PoW Needs Big Competition
Cryptocurrencies give their miners their own crypto currency as a reward with a number of algorithms they have. This is also a gradual and controlled increase in circulating supply. However, using the Proof of Work consensus for this brings great competition and requires huge energy resources. Bitcoin can be shown as the closest example of this. The energy consumed by Bitcoin is still on the agenda in many regions.
DOGE’s Carbon Emissions Decreased by 25%
The fact that Elon Musk initially approved the purchase of Tesla with Bitcoin, but subsequently gave up on it, citing carbon emissions, caused Bitcoin to suffer a great loss at the time. After a year, Bitcoin’s annual energy use has hardly changed, while carbon emissions have increased. On the other hand, Dogecoin’s carbon emissions decreased by 25 percent.