Cryptocurrencies have dominated news headlines for a considerable amount of time. Whilst many are baffled by the market’s incredible growth (the total market cap recently surpassed US$2 trillion, 70 per cent of which is Bitcoin) the tone has not always been positive. Elon-Musk-driven volatility prompted regulatory crackdowns and environmental concern which ultimately put a pause to the euphoria that promised a new era of transactional transparency and money flow. The vast inefficiency of Bitcoin transactions and the need for a constant, low-cost energy supply has caused a natural disconnect with the increasing global shift towards renewable energy sources. It comes as little surprise that most of the crypto mining takes place in coal- or gas-abundant nations.
The idea of cryptocurrencies shifting towards renewable energy sources is nothing new. And while our personal impact at the governmental level may be limited, there is a high likelihood that further regulatory crackdowns will come. Although the given example of China does not instil much hope, it is anticipated that governments will take a more coordinated action towards harmful crypto mining activities. This, in turn, will leave little space for miners to hide in the shadows of non-renewable energy consumption. What’s left for us to do is to allocate our crypto portfolio to sustainable alternatives driving the paradigmatic shift from within.