Key Points
- PayPal and EnergyWeb are encouraging eco-friendly bitcoin mining practices with a new incentive program.
- The initiative aims to mitigate the environmental impact of bitcoin mining, which critics argue is energy-intensive and harmful to the environment.
PayPal Advocates for Environmentally Friendly Bitcoin Mining
PayPal is proposing an incentive scheme for bitcoin miners who adopt sustainable practices.
In collaboration with the non-profit organization EnergyWeb, the PayPal Blockchain Research Group has created a platform that verifies the use of clean energy in bitcoin mining operations.
The Environmental Impact of Bitcoin Mining
Bitcoin mining involves solving complex cryptographic puzzles to generate new transaction blocks on the cryptocurrency’s blockchain.
This process typically requires high-powered computers, which consume significant amounts of energy.
PayPal’s initiative aims to reward miners who utilize low-carbon energy sources, thus reducing their carbon footprint.
The use of such sustainable mining methods can help slow down global warming, as per the National Oceanic Atmospheric Administration.
Critics argue that bitcoin mining leads to air, water, and noise pollution, among other environmental issues.
It’s estimated that bitcoin mining consumes around 127 terawatt-hours (TWh) annually, more than the total energy consumption of Argentina, as per the global energy non-profit Rocky Mountain Institute.
A recent analysis by the New York Times revealed that the energy usage of bitcoin miners is approximately seven times that of Google’s global operations.
