The current global heat wave has sparked all sorts of rumors about a climate emergency. This is potentially big news, not just for industries directly linked to climate change — such as the oil and gas industry — but also for industries that are only tangentially linked, such as crypto. After all, crypto is increasingly under scrutiny by regulators for its power consumption habits. That’s why it’s time to think about climate-proofing your crypto portfolio.
The best place to start is with a green and eco-friendly cryptocurrency like gimbal (ADA -6.02%), which also happens to be one of the top 10 cryptocurrencies in the world by market cap. Even before the latest climate debate started, it prided itself on its eco-friendly blockchain and commitment to sustainability. As a result, Cardano is in a unique position to weather a climate emergency.
A new type of regulatory risk
The crypto industry has always operated with a high degree of regulatory risk. But now he faces a new one. For example, what happens if regulators and other government agencies start issuing climate-related executive orders to regulate, restrict or restrict certain industries? For example, in mid-July, the European Central Bank (ECB) warned that it Bitcoin (BTC -3.78%) mining as part of wider action against fossil fuels. It could also introduce carbon taxes on crypto transactions. The ECB has compared Bitcoin to a “fossil fuel car”, based mainly on Bitcoin’s known energy consumption.
As a result, the race has now begun to prove its green credentials and avoid the wrath of the government bureaucracy. Bitcoin miners, for example, are now struggling to prove that they do not rely on fossil fuels for their energy. They certainly don’t want regulators to think Bitcoin mining has anything to do with traditional mining! And some cryptocurrencies are now making “green blockchain” a central part of their marketing activities. algorithmfor example, now claims to have a carbon negative blockchain.
Cardano is ecologically responsible
By almost all criteria, Cardano is one of the most environmentally friendly and sustainable cryptocurrencies in existence. Unlike Bitcoin, which uses proof-of-work to solve complex math problems and receive new coins, Cardano is a proof-of-stake, where users pledge their coins for the right to complete transactions and receive more coins. to deserve. And that makes the difference. Because Cardano does not rely on energy-intensive mining that uses thousands of powerful computers, it immediately reduces its carbon footprint. Some proponents of Cardano even say it is now 37,500 times more energy efficient than Bitcoin.
As the ECB acknowledged when talking about banning Bitcoin, pure proof-of-stake blockchains like Cardano are the “electric vehicles” of the crypto world. The same governments that want to encourage you to buy electric cars also want you to buy eco-friendly cryptocurrencies. This argument is going to do a lot for cryptocurrencies like Cardano who can prove their green credentials.
Cardano against the government regulator
Finally, one of Cardano’s co-founders, Charles Hoskinson, is currently one of the most well-known voices advocating for the crypto industry in Washington, DC. He knows exactly how the regulatory game plays out, which can be vital as the climate emergency narrative escalates and the Biden White House begins passing some executive orders. This summer, the media praised Hoskinson after his testimony before Congress, in which he eloquently argued for a more streamlined approach to crypto regulation. This is the type of person you want to protect from over-regulation.
Cardano and the future of green cryptography
Overall, Cardano is one of the best games if you want to weatherproof your crypto portfolio. The blockchain is pure proof of stake and very energy efficient, and therefore very green. Other smaller cryptos can play their credentials green, but Cardano is one of the largest layer-1 blockchains, with a total market cap of over $16 billion, making it an important part of the future green crypto.