Crypto News

These green cryptocurrencies should be on your radar in 2022

  • Elon Musk focuses on mining and the environment
  • PoW Compared to PoS means that green cryptos should generate a lot of interest
  • Ethereum 2.0: a green alternative
  • Cardano: also environmentally friendly
  • Stellar: in the top 30

West Virginia Senator Joe Manchin recently dealt a blow to the Biden administration over its environmental agenda, also known as the green agenda, when the Senator said he would oppose the $ 1.9 billion Build Back Better initiative Presidents vote. The legislation contained items that the US would switch from fossil fuels to alternative and renewable energy sources in the coming years.

Senator Manchin called the rising inflation as the main reason why he couldn’t support the spending. Politics involves negotiation, however, and while the initiative may be a dead topic in its current form, it is likely to re-emerge in a smaller form in 2022.

Tackling climate change is not just a US problem. In fact, there is support around the world for a greener energy path. Energy resources drive our lives and our business every day. The move from hydrocarbons to cleaner fuels is affecting markets across all asset classes, and Cryptocurrencies are no exception.

On the way into 2022, the emerging asset class of cryptocurrencies will be very sensitive to environmental concerns. Mining, the leading cryptocurrency, is energy-intensive. In the months and years ahead, we are likely to see the asset class, which includes over 16,100 different cryptos, shift towards a greener path that requires less traditional use of energy.

This is what awaits you in this article

Elon Musk focuses on mining and the environment

The price of Bitcoin soared after it was revealed that Elon Musk, Tesla (NASDAQ :), said it would accept the leading cryptocurrency as payment for the automaker’s electric vehicles. However, Mr Musk reversed course after believing that the Bitcoin mining runs counter to Tesla’s mission to remove the world from fossil fuel consumption.

Bitcoin mining is energy intensive as it requires significant computing power for the computing processes that mine the tokens.

Meanwhile, Bitcoin saw impressive growth in 2021.
These green cryptocurrencies should be on your radar in 2022, Crypto Trading NewsBTC / USD Monthly 2010-2021
Source: Barchart

On December 28, volatile Bitcoin was trading at the $ 48,407.53 level, 67% higher than at the end of 2020 when it closed at $ 28,986.74. At the time of publication, on December 30th, the price is even lower, currently $ 46,768, which means the token is still a very respectable 61% higher than it was at its closing price late last year.

Still, the greener cryptos with a smaller carbon footprint fared even better in 2021, and that trend is likely to continue in 2022.

PoW versus PoS means that green cryptos should generate a lot of interest

To understand the crypto carbon footprint it needs to be explained:Proof of work” against “Proof of commitment“, The two primary consensus mechanisms that cryptocurrencies use to verify new transactions, they the Blockchain and create or reveal new tokens.

Proof of Work (PoW) is the older mechanism used by Bitcoin, 1.0, and many other cryptos. Proof of work and mining are closely related, as the network requires enormous computing power and therefore makes it energy-intensive.

Proof-of-work blockchains are secured and verified by virtual miners around the world who are struggling to solve a mathematical puzzle. The winner gets to update the blockchain with the latest verified transactions. Crypto tokens are the rewards. Proof of work leaves a significant carbon footprint as electricity is generated from fossil fuels such as oil, natural gas and coal.

Proof of stake (PoS) employs a network of “validators” who bring in or “stake out” their crypto holdings in order to have the opportunity to validate new transactions, update the blockchain and earn tokens. Proof of commitment rewards the most invested validators with the greatest commitment that has been held for the longest.

When it comes to the environment, a proof of stake leaves a far smaller carbon footprint than a proof of work.

Ethereum 2.0: a green alternative

The Ethereum The introduction of the 2.0 blockchain began in December 2020, with expected completion in 2022. The new and improved Ethereum protocol uses the faster, more efficient and less energy-intensive proof of stake.Consensus mechanism.

These green cryptocurrencies should be on your radar in 2022, Crypto Trading News

Source: Barchart

While Bitcoin is up more than 60% so far in 2021, Ethereum has. At the end of 2020, Ethereum was trading at $ 738.912. At the $ 3,846.255 level on December 28, the second-leading crypto has moved more than five-fold so far in 2021. At the time of writing Ethereum has moved down and is trading at $ 3,693.14, a gain of almost 400%.

One of the reasons for Ethereum’s rise and outperformance of Bitcoin compared to Bitcoin is the release of Ethereum 2.0, making it the Proof of Stake, a greener cryptocurrency that offers speed and efficiency.

Cardano: also environmentally friendly

As of December 28, (ADA) was the sixth largest cryptocurrency. At $ 1.47 per token, the Market capitalization of ADA $ 50.139 billion. Even after falling to $ 1.33 per token on December 30, it remains in sixth place with a market cap of $ 45.52 billion.

Cardano is a further development of the next generation of the Ethereum protocol. ADA is the native token of Cardanos Blockchain, a flexible, sustainable and scalable platform for the execution of smart contracts that enables many decentralized financial applications. Ethereum‘s co-founder Charles Hoskinson developed Cardano.

Cardano is more energy efficient than Bitcoin because it uses the proof-of-stake consensus mechanism.

These green cryptocurrencies should be on your radar in 2022, Crypto Trading News
Source: CoinMarketCap

The graph shows the closing price of ADA at 17.53 cents per token on December 31, 2020. Exceeded at the level of USD 1.47 on December 28, 2021 ADA Bitcoin and Ethereum in 2021, as the price has increased more than eight times. Even at the $ 1.33 level on December 30, 2021, ADA outperformed both tokens, gaining 600% in value.

Stellar: in the top 30

At 28.62 cents per token on December 28, (XLM) was the 27th leading cryptocurrency with a market capitalization of $ 7.097 billion. It remains in that position at the time of release on December 30th, although its price and market cap are lower – 26.6 cents per token on a market cap of $ 6.62 billion.

Stellar was launched in 2014 and forking off (XRP) to bridge the gap between traditional financial institutions and digital currencies.

Stellar Development Foundation, a non-profit organization, operates Stellar. The Stellar network enables the exchange of US dollars, Bitcoin, Yen and many traditional currencies and cryptos. The network’s native token, the Stellar Lumen (XLM), facilitates trading on the blockchain-based distributed ledger at a fraction of a cent with great efficiency, resulting in a lower carbon footprint.

The network enables individuals and institutions to create tokens for use on the network, which has inspired some to use the network for sustainability initiatives such as investing in renewable energy.

Stellar’s network does not use proof-of-work or proof-of-stake consensus mechanisms. Instead, it is open source and relies on authenticating transactions through a number of trusted nodes. The authentication cycle is shorter and faster, which leads to lower costs and energy consumption.
These green cryptocurrencies should be on your radar in 2022, Crypto Trading News
Source: CoinMarketCap

XLM closed 2020 with 13.24 cents. At 28.62 cents on December 28, XLM outperformed Bitcoin, but underperformed Ethereum and Cardano in 2021. At the level of 26.6 cents on December 30, it still outperformed Bitcoin, but lagged behind ETH and ADA.

Ethereum 2.0, ADA and XLM are green alternatives in the cryptocurrency asset class. Other environmentally friendly tokens, albeit with smaller to micro ratings, are SolarCoin (SLR), BitGreen (BITG), (NANO), (MIOTA), (EOS), (TRX), Burstcoin (BURST) as well as a few others.

Keep in mind, however, that all cryptos, including members of the greener asset class, are highly volatile assets. Any investment should only contain capital that the investor knows is 100% at risk. However, the shift towards environmental protection will favor green cryptos as we enter 2022.

Source: Crypto News Deutsch

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button