Over the past decade, Bitcoin has shown everyone that it deserves the status of a reliable asset: no one has hacked the cryptocurrency and it has a huge long-term potential. Capital continues to enter the crypto sphere and there is no doubt that this trend will continue. While some countries classify crypto-transactions as illegal activities, others recognize them as a legal means of payment. More and more people are learning about cryptocurrencies in the most remote corners of our planet, and while some see them as a way to decentralize and fight inflation, others use them for money laundering and financial crime. The environmental issue becomes more relevant every year. Therefore, a lot of people are wondering: what will happen to the cryptocurrency and what is the cryptocurrency of the future?
Crypto-enthusiasts are optimistic about the future and predict new highs for BTC and other cryptocurrencies. The “big opportunity” for the crypto industry will be the metaverses. Analysts say that such platforms will drive the growth of digital assets and contribute to their mass adoption as a payment instrument. In addition, more and more people are now interested in the by-products of cryptocurrencies: NFTs have made a real boom, and blockchain-based smart contracts and digital national currencies are the results of the progress and popularization of cryptocurrencies. However, not all countries embrace this progress.
On September 24th, the People’s Bank of China, together with nine departments, issued a statement in which it recognized such operations as illegal. China Netcasting Services Association (CNSA) has completely banned its members from posting content that promotes cryptocurrency trading and mining. In October 2021, Chinese media reported that the authorities were looking into the possibility of prosecuting crypto trading and mining.
On the other hand, El Salvador legalized bitcoin on September 7th and purchased 550 BTC through a specially created fund. The government bought 150 BTC right after. In October, the authorities increased the reserves in the first cryptocurrency by another 420 BTC. In November, the state fund of the country purchased 100 BTC. El Salvador has also started mining cryptocurrency using geothermal volcanic energy.
The environmental issue is one of the main points of discussion by the public. Most miners are trying to switch to renewable energy sources, thereby taking care of our planet. After the mining ban in China, consumption of the bitcoin network fell from 92 TWh in March this year to 49 TWh in July. The environmental friendliness of bitcoin mining will only increase as the development of renewable energy continues, and governments seek to reduce the number of harmful emissions from electricity production.
How else can we improve the environmental issue? We can mine more environmentally-friendly and less energy-intensive cryptocurrencies – “green” altcoins. They consume less than one percent of the energy consumed by Bitcoin. These include Ripple, Elrond, Stellar, Algorand, Cardano, IOTA, and Nano. They are mined using other algorithms, which allows you to effectively save electricity in the mining process. But they are not as popular and “profitable” as Bitcoin and Ethereum.
Summing up, we understand that the cryptocurrency of the future, whatever it is, must be environmentally friendly. Renewable energy sources must be used for its “creation”. The number of harmful emissions must be reduced to zero.
Leaders of the mining industry have begun to unite forces and switch to alternative energy sources. Crypto-enthusiasts and large investors have begun to invest their money in the ecological mining of cryptocurrencies. Today, one of the most popular solutions for mining cryptocurrencies is to rent the power of large players using Cloud Mining.
One of the representatives of this industry is the GreenHashes company. The guys started mining cryptocurrency using “clean” and “green” energy: taking care of the environment, they significantly increase the loyalty of society to cryptocurrencies, attracting more and more investors to this market. This model of work allows absolutely anyone to join the mining both beginners with relatively small capital, and professional investors. It is the best way for passive income. The user just needs to register an account and buy one of the many mining contracts. Each contract differs in price and amount of leased capacity. Different durations allow you to remain flexible with the high volatility of cryptocurrencies.