5 Sustainable and Environmental-Friendly Coins You Can Invest
With concerns over the environmental impact of Bitcoin, here are 5 Bitcoin alternatives that are greener and more climate-conscious.
Bitcoin’s environmental impact has been under the spotlight for months and while there are a growing number of cryptocurrency businesses are making efforts to reduce cryptocurrencies’ carbon footprint, some investors are making greener decisions by opting for more energy-efficient and sustainable cryptocurrencies.
Bitcoin runs on proof of work mechanism that takes up a lot of energy and heat to produce a single token, not to mention that most Bitcoins are generated using fossil fuels like coal. And because Bitcoin generally has more daily transactions, Bitcoin uses the most energy as compared to other cryptocurrencies.
That being said, if you are looking to invest in cryptocurrency in a more sustainable way, here are some environmentally friendly choices for you to consider.
1) Nano (NANO)
Nano has presented itself as an eco-friendly digital currency that uses no-mining technology. Created in 2015, Nano uses a lightweight process called Open Representative Voting (ORV) and does not rely on traditional mining practices. Instead, it offers a more eco-friendly solution by using minimal energy for instant and no-fee transactions, unlike Bitcoin that takes 10 to 30 minutes for each transaction and costs $7 and more.
Anyone can receive a Nano token just by solving a captcha on a web page, allowing people with low-end computers to be involved. Nano currently has the smallest energy footprint in the market, using only 0.000112 kWh per transaction.
2) Cardano (ADA)
Cardano is considered the world’s first peer-reviewed blockchain that is claimed to be able to process transactions beyond Bitcoin or Visa’s processing capabilities. Although Cardano uses mining, it’s still much more eco-friendly as it uses the proof of stake model and layered blockchain which requires less energy than the proof of work system.
Cardano is not just fully open-sourced and streamlined, it’s also constantly compared with Ethereum as it was developed by Charles Hoskinson, the co-founder of Ethereum. Its market cap is currently valued at $42.22 billion and many believe ADA has a strong growth potential.
3) SolarCoin (SLR)
If Bitcoin mining uses a proof of work system that operates by fossil fuel-powered plants, SolarCoin is the exact opposite. How SolarCoin works is that every new coin is generated from renewable energy, creating 1 Solarcoin for every Megawatt hour generated from solar technology.
SolarCoin is still relatively new in the market and requires users to upload documentation of energy generation in order to be rewarded with coins, however, the Internet of Things may one day allow automatic updates from solar arrays. Overall, SolarCoin is a decentralised platform that aims to put the environment first.
4) Hedera Hashgraph (HBAR)
Like Nano, Hedera Hashgraph uses no-mining technology to support fast transaction fees with low fees. The proof of stake coin is supported by big companies such as IBM, Google, Boeing, and more. On May 6th, Hedera Hashgraph surpassed Ethereum’s total network transaction with 6.5 million daily transactions, exceeding Ethereum’s 1.2 million and Bitcoin’s 300,000.
HBAR has a current supply of around 8 billion HBARs and a fixed supply of 50 billion HBARs.
5) Stellar (XLM)
Another cryptocurrency that stays away from proof algorithms is Stellar’s XLM. Launched in 2014 by a non-profit organization called the Stellar Development Foundation, Stellar aims to bridge the gap between traditional financial institutions and digital currencies. It’s also known as the alternative to Paypal as it enables quicker and more cost-effective cross-asset and cross-border transactions for institutions and individuals.
Their cryptocurrency, Stellar Lumens, uses a method of consensus algorithm called Stellar Consensus Protocol (SCP) which only requires a few sources to come to a consensus instead of the whole network, making it faster and less energy-intensive.
‘Green’ Cryptocurrency For A Greener Future
Given that cryptocurrency is becoming a mainstream asset class with exponential growth in the digital economy, its true environmental impact is also a significant aspect that investors take into account before investing. Thus, it won’t be long before eco-friendly cryptocurrency with low energy costs is becoming more and more sought after.
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Disclaimer: Opinions expressed in Altimates are not intended to be a forecast of future events, a guarantee of future results, and investment advice. All investing is subject to risk, including the possible loss of the money you invest. Please do not invest in cryptocurrency without understanding its fundamentals.