Bitcoin mining poses a “threat” to cryptocurrencies.

Mining cryptocurrencies use more energy than a country consumes. Some celebrities, like MP Elizabeth Warren and billionaire Bill Gates, recently called on everyone to watch out for the environmental impact of the mining industry.

A lot has caused some traders to adopt a wait-and-see attitude towards Bitcoin. These factors include the link between Bitcoin and money laundering and hacking. However, the current impact of cryptocurrencies on climate change cannot be ignored.

Bitcoin mining is a powerful process that requires the use of high performance computers to solve a wide range of complex problems. These “proof of work” challenges force the miner to do their best to find out the numbers, and as more and more miners complete those numbers the process will become more difficult.

Instead of relying on themselves to guess the numbers, “today's busy workers” can use specialized tools to quickly create solutions. The problem is that the energy required for these calculations is faster than the total electricity consumption of some developed countries.

Massachusetts Democratic Senator Elizabeth Warren raised the issue during a hearing on Capitol Hill in June and posted the news on social media. “Bitcoin uses more energy than individual countries because it needs more metering,” he tweeted. It will be. Cryptocurrency. "

Unfortunately, after checking the facts, it turns out that Warren was right. According to the Cambridge Bitcoin Power Consumption Index, mining Bitcoin uses more energy than many European countries like Belgium and Finland.

Bill Gates recently urged everyone to be vigilant about the environmental impact of Bitcoin mining, and Elon Musk plans to phase out Bitcoin payments until Tesla can upgrade the device.

Congressional oversight may be more apparent to advisers wishing to use cryptocurrencies in their consumer markets, but Bitcoin mining is still a high-tech and hapless process used to fix the problem. . Evidence of evidence packaging issues is extremely valuable in the real world.

For cryptocurrencies, it's a matter of life and death, and the solution is only to support the rapid development of this technology. Researchers say some private start-ups have recently attempted to tackle security concerns by focusing on the obvious and making a deal with the miners. However, environmental, social and governance (ESG) investors can present the solutions they need.

Morningstar said impact investing has systematically become an integral part of investing, with assets from the environment, relationships, and investment management having come a long way, roughly $ 51.1 billion (approx. 330.7 billion RMB) last year. But can Bitcoin be part of the ESG wallet because it can generate so much carbon?

The main driver of technological innovation, according to a Cambridge University study, will be investors determined to disrupt investment. Strict ESG rules and regulations will further restrict businesses, and this information can force minors to change their own interiors.

The University of Cambridge said: "While some view these strict rules as a potential threat to miners, it creates a financial backlash for the Bitcoin market to actively decarbonize."

Digital assets like Bitcoin and Ethereum can be volatile. Some wealth managers, like Ric Edelman (Ric Edelman), have compared the advance of this technology to the rise of the Internet and the growth of the information superhighways at the turn of the 21st century.

But for Bitcoin to realize its potential, the market must first reduce its carbon footprint. This is because it has to do with human life, for example climate change.