The UN Says Cryptocurrencies Can Help Fight The Climate Crisis Despite …

A UN report says the amount of energy required for each transaction is 980 kWh, compared to 0.0006 kWh for each Mastercard transaction. Typical Image / Pixabay

Despite global concerns about the negative impact of cryptocurrencies on the environment, such as Bitcoin’s growing carbon footprint, the United Nations has said that the cryptocurrencies and the blockchain technology they run on can be of great benefit to those struggling with it. sustainable world economy. In his recent report analyzing the dangers and prospects of cryptocurrency technology, he said: “UN experts believe that cryptocurrencies and the technology that supports them (blockchain) can play an important role in sustainable development and actually improve our care for the environment.”

The report explains that there are three main areas in which blockchain can accelerate action to combat climate change: transparency, climate finance, and clean energy markets. For example, “data on emissions of harmful greenhouse gases in many countries, according to a partnership between the United Nations Environment Program and the Danish Technical University (UNEP-DTU), are incomplete and unreliable. Blockchain solutions can provide a transparent and reliable way to show how countries are taking action to reduce their climate impact. ”

“Due to the continuous development of blockchain research, there is constant innovation in this industry. The main reason for the high energy consumption of cryptocurrencies is its complex nature and unrivaled resistance to fraud and counterfeiting. In addition, many innovations such as the addition of a lightning layer to the blockchain by companies such as Jack Dorsey’s Square Crypto will ensure its sustainability in the near future, ”said Gaurav Dahak, founder and CEO of Bitbns at Financial Express. Online.

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Bitcoin is mined using powerful computers to solve complex mathematical problems that require huge amounts of energy, so much so that it is estimated to consume more energy than some countries such as Kazakhstan and the Netherlands. In addition, the UN report states that the amount of energy required for each transaction is 980 kWh, compared to 0.0006 kWh for each Mastercard transaction.

On climate finance, the UN stated that “investments that help slow the pace of climate change can be increased if carbon markets are activated, allowing businesses and industries to move to low-cost technologies. Carbon emissions”. In addition, blockchain could be an important element in accelerating the use of renewable energy sources such as wind and sun. The UN noted that since these sources are inherently discontinuous and decentralized, new forms of energy markets are needed.

Tesla Elon Musk bought $ 1.5 billion of bitcoin earlier this year to use as a payment method for its electric vehicles. However, in May, Musk decided to stop Bitcoin payments due to the “insane” amount of energy required to produce Bitcoin due to environmental concerns.

The cryptocurrency suggestions / recommendations in this story come from the respective commenter. Financial Express Online is not responsible for their advice. Before trading / investing in cryptocurrency, consult your financial advisor.

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