on the crypto
As an investment opportunity and as the fastest and safest payment method, cryptocurrencies have become very popular over the past decade. However, Bitcoin's astronomical rise was controlled by Elon Musk earlier this year when Tesla CEO (Tesla shares - TSLA ticker) criticized the currency for its environmentally damaging profile.
This has led to a number of new cryptocurrencies entering the market, many of which place sustainability and eco-friendliness at the heart of their business strategy. If you're only discovering cryptocurrencies for the first time, you may want to take advantage of the greenest cryptocurrencies on the market right now. Check out our list by continuing to read.
Nano
On the crest of Musk's announcement is Nano, which is explicitly marketed as an eco-friendly cryptocurrency. According to its creators, the currency does not involve mining, minting or printing in its production, which makes it as energy efficient as possible. Additionally, all transactions involving Nano can be handled from standard desktop computers, with no fancy hardware (or software) required to complete the process. This makes it a much greener alternative to Bitcoin.
Algorand
The blockchain technology behind Algorand depends on a proof-of-stake (PoS) concept rather than the proof-of-work that powers Bitcoin. This means that it is not necessary to use large areas of computing power to process a complex mathematical problem and verify a transaction, but rather simply staking a separate amount of currency to act as collateral. Additionally, Algorand has also partnered with ClimateTrade to set the ambitious goal of making the currency carbon negative. There is nothing more ecological than this!
Cardano
In the wake of Musk's Bitcoin bomb, Cardano was named as one of the most sustainable cryptocurrencies he was considering accepting for Tesla payments. This is largely due to the fact that the currency is staked, not drawn, which means it consumes far less energy than its rival. In one measure, it could be up to 37.500 times more efficient than the market leader! The founder of the currency said the entire network that supports Cardano uses only 6 GWh of power, making it an attractive option for environmentally conscious consumers and investors.
Elrond
If you thought Cardano's comparative efficiency alongside Bitcoin was impressive, wait to hear Elrond's claims. According to its founders, the technology behind Elrond is 6,24 million times more efficient than what Bitcoin supports. Despite these impressive statistics, it is still capable of processing a staggering 15.000 transactions per second. That kind of efficiency and processing power set Elrond apart as a currency built for the current climate, but one that won't contribute to climate change.
CHIA
One of the most recent tokens in the block, CHIA was only released earlier this year, making its market entry in February 2021. It was invented by Bram Cohen, the brains behind the hugely successful torrent client BitTorrent. Although still in its infancy, CHIA operates with a completely new method of doing things. Instead of relying on PoS or PoW, CHIA instead uses the Proof of Space and Time (PoST), which Cohen says is safer and more decentralized than both of its rivals. Although it is still a very young currency, the signs so far are encouraging.
For novice cryptocurrency investors who prioritize the sustainability of their assets, these five tips provide a more environmentally friendly alternative to Bitcoin.
