Bitcoin is being criticised by the environmental nonprofit organisation Greenpeace USA for having a coding system that the organisation describes as “outdated and efficient.” In order to be environment friendly and sustainable, Bitcoin has to replace its code system.
In a tweet sent on Thursday, the group reiterated its position that Bitcoin’s proof of work system is to blame for the current state of the climate problem. In its place, it proposed that the code be changed to a process that uses less energy, such as proof of stake.
According to the statement made by the non-profit organisation, “Ethereum recently proved that cryptocurrency does not have to come at the expense of a habitable world.” In the meanwhile, it slammed Bitcoin for continuing to use more power than “entire nations.”
The amount of energy required to mine Bitcoin might vary depending on the state of the market, but in general, this need has increased over time as the Bitcoin mining business has grown. The Cambridge Bitcoin Electricity Usage Index estimates that its theoretical top limit consumption is around 159.63 TW/h at the moment. According to statistics that was published by Forbes in the previous year, the whole nation of Norway utilises around 124 TW/h.
The proof of work protocol, which is a technique for attaining blockchain consensus and security by using energy, is the primary contributor to its energy footprint. To be more specific, users (also known as miners) expend energy in a competition to create Bitcoin’s next block. The victors of this competition are rewarded with Bitcoin. As the price of Bitcoin continues to climb over time, it is only natural that miners would be driven to use more energy in order to receive larger incentives.
According to the explanation provided by Greenpeace, this method is providing an incentive for miners to “bring back to life” ageing coal and gas facilities, which in turn “fuels the climate disaster.”
The non-profit organisation stated that “It Doesn’t Have to Be Like This.” One of Bitcoin’s primary rivals, Ethereum, has just updated its coding mechanism in order to cut its energy use by 99.95 percent.
The last time Greenpeace went after Bitcoin was in March, shortly after Chris Larsen, co-founder of Ripple, financed a $5 million campaign to move Bitcoin to proof of stake. Similar to the previous time, Greenpeace has issued an appeal to Bitcoin-affiliated tech millionaires, such as Jack Dorsey and Elon Musk, to raise awareness about the cryptocurrency’s impact on the world’s energy supply.
Bitcoin’s energy usage fluctuates market circumstances
But Bitcoin supporters aren’t going anywhere. After publishing a blog post on Wednesday praising the advantages of proof of work over proof of stake protocols, Dorsey made it very apparent that he does not like proof of stake protocols. In addition, Dorsey was a co-signatory on a pro-proof of work letter that was sent to the Environmental Protection Agency in May. The letter critiqued proof of stake for having a tendency toward centralization and said that proof of work was more decentralised.
Michael Saylor, Executive Chairman of MicroStrategy, has likewise decided to cease withholding punches in his support of Bitcoin mining. There is also the issue of how large of a reduction in world emissions there would be if the transition were truly carried out. It is believed that Bitcoin is responsible for around 0.08% of world emissions at the moment, which would likely be the maximum amount that it could reduce in terms of emissions.
In addition, the Merge has shown that an update like this would not cause all miners to stop operating when it is implemented. Instead, it seems that a significant number of them have moved to other proof-of-work networks, such as Ethereum Classic.
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