The World Economic Forum (WEF) made a comment contrary to the common view that cryptocurrency mining has negative effects on the environment. WEF, in its previous statements, brought significant criticism by mentioning the high energy consumption of cryptocurrencies. However, in recent statements, the forum surprised everyone by offering insights that crypto markets and crypto mining could have economic and environmental benefits.
The World Economic Forum (WEF) argued that Bitcoin mining could result in a significant reduction in greenhouse gas emissions. In the published video, it was claimed that some oil and gas companies engaged in crypto mining can help reduce waste and emissions that negatively affect the environment.
WEF points out that there will be a huge reduction in gas emissions if Bitcoin mining switches to renewable energy sources. Explaining his views in the WEF video, Crusoe Energy CEO Chase Lochmiller stated that the negative impact of methane emissions on the environment can be reduced by deploying crypto mining centers where waste energy sources are located.
While discussions on the environmental impact of cryptocurrencies continued, WEF’s environmentally friendly approach to Bitcoin mining was seen as an innovative solution to climate crisis concerns. It was emphasized that the miners’ continuation of their work using sustainable energy will also contribute to the crypto economy of the companies.
The WEF’s view that Bitcoin mining could be implemented in an environmentally sound manner was also welcomed by the crypto community. While underlining that crypto mining companies are rapidly adopting renewable energy sources, he believes that BTC mining will be more energy efficient in the coming periods.
The proof-of-work model, which is the consensus mechanism used in the production of cryptocurrencies, has been criticized for years because it negatively affects the environment with the use of high amounts of fossil energy. Bitcoin is the focus of criticism as the largest cryptocurrency using the proof-of-work model. On the other hand, abandoning the proof-of-work mechanism is seen as a situation that can create a negative impact on the security of the Blockchain network. However, Ethereum made a historic decision on this path, switching from a proof-of-work to a proof-of-stake consensus mechanism last year. Thus, the Ethereum network started to work by providing 99.9% energy efficiency and contributed to the reduction of environmental criticism. The transition of crypto assets that continue to use the proof-of-work model such as Bitcoin to renewable energy sources may reduce the pressure on cryptocurrencies.