Will Greenpeace Change Its Mind On Bitcoin Now?
Since its inception in 2009 as a cryptocurrency, dissenters to Bitcoin have long held some very strong views about its merits, or lack thereof. One of the perhaps most vocal and influential opponents to Bitcoin is the international environmental non-governmental organization (NGO) Greenpeace. The organization has been a long-time critic of Bitcoin’s power-hungry mining process and its potential to further damage the environment. But times have changed and recent technologies suggest that the basic structure of Bitcoin mining could become more eco-friendly. So has the time come for Greenpeace to have a change of heart and give Bitcoin more favorable consideration?
Can Bitcoin Be More Eco-Friendly?
Mining Bitcoin requires massive amounts of computing power. As such, more and more miners are demanding access to more and more energy to fuel the power-hungry computer networks that actively mine the digital commodity. As many sources of energy come with a heavy carbon footprint, Bitcoin mining has been the target of some harsh criticism from the environmental sector.
However, in recent years, certain technologies have been developed that could mitigate the need for vast amounts of energy. Perhaps most notably, renewable energy sources are becoming increasingly available, leading many to suggest them as the ideal source for “green” Bitcoin mining.
For instance, a bitcoin mining company in New York called Greenidge is using excess gas from a natural gas plant to power its rigs and using a Toro Energy process to refine the gas and reduce its carbon footprint. This step-by-step approach to green Bitcoin mining appears a relatively logical and secure bridge between power-hungry Bitcoin and environmental lobbying.
Can Greenpeace Adapt To The Future?
Greenpeace is an organization that is in tune with the times. It has adapted in the past when needed and looks forward to applying the same approach when faced with this situation.
In the past, Greenpeace has been a formidable struggle thrower against Bitcoin, but now they must consider whether it is time to adopt a more conciliatory approach. After all, with recent advancements such as the Toro Energy process used by Greenidge, it clearly appears that the technology industry is making impressive strides to reduce Bitcoin’s environmental impact.
The Pros and Cons Of Bitcoin Investment
For those looking to invest in Bitcoin, one might consider a few pros and cons. On the plus side, Bitcoin may be mined using renewables or hydropower, meaning that the miner is getting a good return considering the expense to that industry. On the other hand, since mining has become more competitive, the cash rewards have decreased significantly, making the task of mining a less attractive endeavor than in the past.
On top of that, Bitcoin is still a relatively volatile currency with no guarantee of the value of that currency increasing or decreasing over time. Additionally, with the rise of blockchain technology comes the looming fear of a 51% attack, where one user or entity obtains a majority of the computing power on the Bitcoin network and can manipulate the transactions to suit their own needs.
Finally, there are certain jurisdictional issues to consider as well. Some jurisdictions view Bitcoin as an asset, meaning that any profits derived from Bitcoin must be reported or taxed. Others view Bitcoin as currency, but with no gold or silver backing, there is little to no control over its value in the long run.
Greenpeace has long held a seemingly unshakeable negative stance on Bitcoin and its effects on the environment. However,time marches on and with the advent of new technologies and initiatives that could greatly reduce the carbon footprint of Bitcoin mining, it might be time for them to reconsider their position.
In the end, the choice to invest in Bitcoin is ultimately a personal one and one should be sure to consider the pros and cons of the investment before making a commitment.