Cryptocurrencies are notoriously bad for the environment… but is there a way we can make it better?
A study entitled “Revisiting Bitcoin’s Carbon Footprint” showed how Bitcoin could be responsible for 65.4 megatons of carbon emissions annually, which is about the same amount as the entire country of Greece.
China’s crackdown on Bitcoin mining hasn’t quite made the dent in these numbers that was expected, mainly since it was later found that mining in China never stopped. Simply put, no restrictions will make a difference. Bitcoin was created to resist regulation and censorship, so even if a country banned mining, it wouldn’t stop individuals from building mining rigs in their homes.
High energy consumption
The high energy consumption of the mining process is not a fault; it is a function. Bitcoin mining is the process of validating token transactions without the interference of third parties. This validation process consumes large amounts of energy, using the computing power of thousands of mining machines.
This entire process used to be possible with home computers, but mining hardware has evolved since the early 2000s, giving rise to application-specific integrated circuits, chips made exclusively for mining Bitcoin. These machines run constantly, causing huge amounts of consumption close to the energy used by countries like the Netherlands or Chile.
Miners buy the electricity they use, most often generated from fossil fuels. Burning these fuels releases greenhouse gases that warm the Earth’s climate and cause pollution that harms human health.
The problem does not end there. The competition among miners increases energy use, and as Bitcoin’s value climbs higher, the competition gets tougher.
As of May 2021, computers in the Bitcoin mining network were making 180 quintillion guesses per second, and each BTC token was selling for $36,000 that month before climbing to $57,000 in December 2021. With incentives like these, it’s no wonder miners are constantly working with mining more cryptocurrency.
Energy use – with numbers
According to the University of Cambridge Electricity Consumption Index, the global Bitcoin network needed 14.34 gigawatts of electricity generation by June 2022, which is enough to power nearly 14.4 million American households. That’s about 126 Terawatt-hours (TWh). If we take an average of 10.6 cents per kWh, that amounts to approximately $13.4 billion. In addition, energy consumption for mining reached an all-time high in late 2021, reaching over 200 terawatt-hours.
All this does not even take into account the environmental damage caused by these activities. At this point we need to plant 284 million trees to offset the effects of Bitcoin mining!
A negative impression
Blockchain technology and cryptocurrencies provide new opportunities for all industries, from finance and banking to media, healthcare, entertainment and e-commerce. Unfortunately, however, these disturbing statistics take the focus away from the benefits and put the spotlight on how harmful they are to the environment, and rightly so.
As a result, much of the public is hesitant to adopt Web 3.0 and its components.
With the bad press cryptocurrencies are receiving, good projects that make a genuine effort to mine sustainably are drowning in the noise before they have a chance. Several innovative projects such as Cardano (created by Ethereum co-founder), whose Proof-of-Stake model eliminates mining, and Ripple, which will be carbon neutral by 2030, are emerging in response to the effects of Bitcoin mining.
Among these projects is Megatech (MGT), a South African-based firm that ensures sustainability through blockchain technology.
A new view
Megatech is the world’s answer to the energy problem, implementing the ultimate green sustainable energy technology.
There is a great demand for green power supply worldwide, especially in Africa. MGT combines state-of-the-art solar energy technology, revolutionary storage technology and a dynamic financing model to ensure high profits and low processing times.
All token holders benefit from financial returns on solar facilities owned by Megatech. The first facility, Project Beta, is a 60MW solar park that will include a 100MWh technology with the option for users to sell green renewable energy at premium prices to blue-chip listed entities that have already signed up with Megatech.
In addition, 40% of all financial gains from this project and all future projects in the pipeline will accrue to MGT Solar (PTY) LTD. company independently managed by fiduciary directors on behalf of token holders participating in the performance staking program.
Megatech is also in partnership with various renewable energy companies and has contracted one of the leading EPC technical teams in Africa to realize its vision. Their initiative is 100% compliant with ESKOM (National Energy Commission).
A better tomorrow
Climate change is no longer a future problem; it’s here. Nevertheless, it is not too late to address these concerns and move towards sustainable energy while maintaining our lifestyles and bringing the limitless possibilities and benefits of blockchain technology and mining to individuals and companies worldwide.
Megatech’s vision to become the number one blockchain technology company comes only on the other side of its passion for sustainability and improvement. If, in the process of solving one of the biggest problems plaguing our planet, they can allow users to earn crypto, that’s just icing on the cake.