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Category Archive : Environment

Ethereum will no longer be mineable- Announced changes

Ethereum will no longer be able to mine.

The authors of the second most popular cryptocurrency in the world have announced major changes, which primarily concern mining, ie the creation of new Ethereum.

Well, that doesn’t seem to be the case anymore.

Ether, like Bitcoin, is created by very fast computers solving complex tasks.

When the task is solved, Ethereum is obtained and everything is written in the blockchain.

The problem is that this process is very demanding and consumes a huge amount of energy, and very powerful machines are needed.

That is why mining is banned in many countries.

Now that is changing, so the concept of proof-of-work, which existed until now, will no longer be possible, but only a new proof-of-stake.

This means that Ethereum owners are becoming so-called validators.

The more Ether you have, the greater the chance that you will be a validator who will stack transactions into blocks and get a reward for it.

And since validators use their own cryptocurrency to invest, they are motivated to do so.

If they do not participate in the process, their invested ether begins to decline.

Everything should work and ensure high security of transactions and ownership of cryptocurrency.

These changes should reduce energy consumption by 99 percent and make mining machines virtually unnecessary.

Critics of the process point out that this change is similar to the replacement of the engine on the plane during the flight.

Others complain about the fact that cryptocurrencies are not safe because such changes are possible at all.

Biden is also hitting cryptocurrencies: the United States is preparing a new strategy

US President Joe Biden is expected to sign an executive order this week, which will present the government’s strategy on cryptocurrencies.

The order will instruct federal agencies to study potential regulatory changes, as well as the effects of cryptocurrencies on security, the economy, and financial stability.

The comprehensive order includes an examination of the central bank’s digital currency(CBDC) and the environmental impact of cryptocurrency mining.

The Federal Reserve will examine the CBDC(Central Bank Cryptocurrencies). The Fed’s board of directors began consultations on the CBDC on January 22.

The Environmental Protection Agency and the Office of Science and Technology would conduct a study on the impact of digital resources on the environment.

Individual agencies are expected to report their findings later this year.

The order, which was drafted last year, was supposed to be signed at the end of February, the week when Russia invaded Ukraine.

Various countries are considering banning cryptocurrency mining due to high energy consumption

The announcement by the Kosovo authorities that they would temporarily ban the mining of cryptocurrencies resulted in the sale of more equipment needed for this activity.

The government of this country has decided on a ban in order to alleviate the energy crisis.

Among other things, the equipment used for cryptocurrency mining consumes a lot of electricity.

These are extremely high-power computers.

Cryptocurrency mining in one of the poorest countries in Europe is very attractive.

One Bitcoin is traded for more than 37,700 euros.

On the other hand, the price of Kosovo’s electricity is the lowest in the Old Continent, and the reason for that is that 90 percent of electricity in domestic production is obtained from lignite, which this country has in large quantities.

In addition, the government subsidizes energy bills.

According to the online edition of the Guardian, it is assumed that this mining is most present in the north of Kosovo, where the predominantly Serb population lives.

Most of them do not recognize the independence of Kosovo and, according to the British paper, have not paid for electricity for two decades.

The number of cryptocurrency miners was increasing and they managed to make good money on it.

However, it seems that the decision of the Kosovo government is a bad time for cryptocurrency mining.

This raises the question of the future of mining Bitcoin and other cryptocurrencies.

The University of Cambridge has calculated that mining Bitcoin consumes 125.96 terawatt-hours of electricity worldwide annually.

This is more than the total annual electricity consumption in Norway, Argentina, the Netherlands, and the United Arab Emirates.

The inability of the Kosovo government to meet the need for increased electricity consumption has resulted in an energy crisis.

Many households were left without electricity and electricity prices went up.

Due to that, the authorities were forced to import electricity and subsidize its payment to households.

Kosovo is not the only country that has banned cryptocurrency mining.

It was announced that this will be done in China, which is the world’s largest industry for this activity. They also decided on a ban in Iceland.

It is likely that mining of this kind will be questioned by the authorities of the United States of America, Kazakhstan, and Russia.

Among the most important reasons for that is the high electricity consumption.

How does cryptocurrency mining affect the pollution of the human environment?

Will the resumption of the use of discarded thermal power plants further endanger the level of pollution on the planet?

Bitcoin mining is becoming more expensive for the simple reason that fewer and fewer coins are left to be mined. Of the total predefined amount of 21 million coins, another 2.3 million coins remain to be mined.

Mining comes down to calculating cryptographic hash functions and comparing the calculated value with a database of undiscovered coins.

The smaller the remaining amount of coins, the longer the job of calculating and comparing the values of calculating hash functions.

Since the calculation process is longer, the amount of energy required for the operation of computer equipment is higher, ie the costs of electricity used by digital miners increase.

The obstacle to big Bitcoin mining is finding enough cheap energy to run huge, powerful computer plants that create and trade cryptocurrencies.

A Bitcoin mining plant in downtown New York has implemented a solution that has upset environmental movements.

Namely, the plant uses its own thermal power plant! Greenidge Generation has restarted a power plant that was once closed and conserved due to excessive environmental pollution.

Now the power plant on the shores of Lake Seneca produces about 44MW to run 15,300 computer servers as well as additional electricity it sends to the state electricity grid.

The megawatts used for Bitcoin mining and trading could power more than 35,000 homes! Proponents of cryptocurrencies call this venture a competitive way of mining cryptocurrencies without using the existing electricity grid.

Environmentalists express fear of revived fossil fuel power plants that emit greenhouse gases primarily for the purpose of making a private profit and not for the sake of achieving the public good.

Considering Greenidge a “test balloon”, environmental movements are asking the state to disable the operation of such thermal power plants in order to protect air quality and prevent similar projects.

Warnings of excessive pollution of the Earth’s atmosphere are coming from various directions, while the effects of global warming are becoming more noticeable.

According to published data, Greenidge mined 729 Bitcoin coins in the last three months, using 58 percent of the produced electricity for mining.

It was also clearly emphasized that the power plant regularly supplied the state network for electricity transmission, which was highlighted as a contribution to the energy system of the state.

Additional pollution of the human environment by reusing already discarded technologies is justified by encouraging the development of the region by introducing new cryptocurrency technology.