One of the main reasons bitcoin was made was to decentralize money from big governments and banks. But this also means there is no way for anyone, banks or legislators, to limit its emission. At least today.
A new trend has been seen lately – the development of eco-friendly cryptocurrencies that aim to create a positive impact on the environment, reduce energy consumption, and create a social impact.
The following are two examples of eco-friendly cryptocurrencies:
One of the first examples of eco-friendly crypto coins is SolarCoin, launched in 2014 as an alternative to Bitcoin’s proof-of-work consensus algorithm, which requires mining activities that use vast amounts of computational power and electricity.
SolarCoins are created by solar panels owners who submit proof of solar energy production. For each 1 MWh of solar power produced, the owner receives one coin, which they can transfer to another person or use as payment for services at places that accept SolarCoins.
2. Krakatoa Eco Coin
Another example is Krakatoa Eco Coin, a cryptocurrency raising awareness about environmental issues. The project was born to motivate people to do something about global environmental problems. It was also designed in such a way that it can help fund scientific research on alternative energy solutions, organic agriculture, and healthy living practices.
The coin’s emission is based on scientific evidence revealing that CO2 levels need to be reduced by at least 3% per year if we want to avoid reaching irreversible climate change.
Krakatoa Eco Coin is mainly traded on the Ethereum blockchain using an ERC20 coin standard. Its emission rate is limited, and it has a proof-of-stake feature that allows owners to earn transaction fees by keeping coins in their wallets or stake them.
These are just two examples of how cryptocurrencies seek to make the world a better place. Other coins focus on making the world cleaner and more eco-friendly, like SolarCoin (Proof of solar energy production) or RNG coin (used by waste collectors in developing countries for payment). Blockchain technology is already being tested to verify the origins of foodstuffs, diamonds, and even fine art.
Why is Bitcoin Existence Important?
The growing number of environmentally-friendly cryptocurrencies is a positive development. Nevertheless, Bitcoin and other crypto coins still have an essential role in finance and economics as they currently provide significant benefits to consumers.
Due to its anonymity, Bitcoin can help people who live under oppressive regimes transfer money without being tracked down by their governments. There are several crypto wallets to sell or purchase coins these days. Bitcoin payments are both quick and inexpensive compared to bank transfers or Western Union money transfers.
That’s why many argue that cryptocurrencies like Bitcoin will continue to coexist with other eco-friendly coins, allowing people to use less energy when they transact while giving them the option of using coins that don’t drain our planet’s resources at all.
How to Invest in Eco-friendly Coins?
Before anything, you need to have the know-how about cryptocurrencies. The good news is that there are numerous online-based classes you can enrol such as Dan Hollings’ crypto training. The following are ways how to invest in eco-friendly coins:
1. Invest in Initial Coin Offering
Despite popular belief, investing in cryptocurrencies is not limited to buying them and waiting for their value to increase. Other ways can be equally rewarding. For example, you can invest in an initial coin offering (ICO) of a company that develops products using blockchain technologies.
This way, you become an actual shareholder who shares the risks and benefits of the startup’s business alongside other shareholders. Your investment also allows the company to develop its product or service faster and attract more customers, increasing the coin value over time.
2. Invest in Companies That Support Crypto Payments
You can also invest in companies that support certain coins by accepting them as payment for their products and services, thus making those coins more valuable.
The token standard that is used by the most environmentally-friendly coins is ERC20. This means that it can be traded on exchanges and used to pay for products at several online stores. Many other cryptocurrencies use this same standard, which allows you to benefit from increased liquidity and purchasing power without converting your money into fiat currencies like the dollar.
3. Trading of Crypto
Many websites allow you to trade cryptocurrencies without having your identity revealed. If you want to buy new coins or trade existing ones, these are the best options.
Investing in environmentally-friendly cryptocurrencies can be profitable and allow you to make the world a better place at the same time. All you need is some research about which coins work for their stated purpose and an investment plan that suits your needs. Investing in environmentally-friendly coins is a worthy goal, especially when considering that they’re often cheaper to use and store.
About the Author:
Patrick Watt is a content writer, writing in several areas, primarily in business growth, value creation, M&A, and finance. Other interests also include content marketing and self-development. Say hi to Patrick on Twitter @patrickwattpat.