The world is far off from 100 percent green energy, as of now, about 20 percent of the world’s energy is green. However, much of the world, especially the developed space, is currently advocating and moving away from fossil fuels quickly. Gradual phase-out of the commodity might have a lot of impact on crypto, whose mining activities benefit from oil and other fossil fuels.
In 2021, when Bitcoin was reeling from an immediate ban from the Chinese market, Elon Musk announced that Tesla would not be accepting Bitcoin for the top-of-the-range Tesla automobiles. The news pressured some investors to sell their crypto assets in droves and learn what is forex trading to move towards other investments in PrimeXBT or other trading platforms.
The Tesla boss wanted confirmation that Bitcoin mining would at least use 50 percent of clean energy before allowing it as currency for buying a new Tesla. The move by Elon Musk begs the question of whether the crypto industry will weather the green revolution.
What Is The State Of Renewable Energy In The World?
A crackdown on Bitcoin miners in China highlighted an intriguing fact that most miners used non-renewable sources of energy to spark new Bitcoins to life. The glaring revelations also showed that most miners shifted their operations to North America to continue their operations, a continent highly dependent on fossil fuels.
The U.S. boasts of the world’s cheapest energy rates in the developed world and is a significant home to Bitcoin miners—currently the second largest. Estimates in 2021 revealed that the U.S. has a robust program to boost green energy. However, even with the efforts and investments in generating green energy, the total amount of green energy stood at about 21 percent.
It is also imperative to understand that the United States has made many efforts to phase out fossil fuels in energy production in the past decade. Before 2020, coal dominated the total Megawatts of power production, which stood at about one million. Since then, coal-based energy production has declined, and is now lower than nuclear and other renewable sources combined.
Will Renewable Energy Sustain The Needs Of Cryptocurrencies Into The Future?
During the Covid pandemic, the price of energy, especially natural gas, spiked, according to PrimeXBT stock price indicators. The increments have reversed some steps made to combat the use of coal in crypto mining and maintaining huge blockchain networks. In 2022, it is likely that a crypto-miner might use non-renewable sources of energy more than they did back in 2019 and prior.
However, with the significant investments put towards clean energy generation, the situation might change shortly when the energy markets adjust, and prices tumble to historical averages.
How Will Crypto Survive When the World Phases out Fossil Fuels?
Fossil fuels are natural, and plenty of wells still exist below the ground to last many years. However, the risk of digging them out and converting them into power puts the earth at risk of a temperature increment that might prove deadly for future generations.
The risks of leaving the fuels below the earth’s surface mean grounding trillions of dollars for energy-dependent countries that highly covet the commodity to run their economies. The conflict in priorities between countries that are keen on keeping the earth safer for future generations and countries that depend on the commodity might lengthen the transition period.
A forced transition in the way of cars, appliances, and factory equipment running on clean electricity might shift the dynamics quickly. However, the transformations to green energy might have little impact on cryptocurrency trading in PrimeXBT and Crypto mining.
Already, Hive blockchain has set the stage for the inevitable fall of fossil fuels. The firm has concentrated on creating crypto exchange networks that do not rely on dirty fossil fuels. If the other crypto firms follow, then cryptocurrencies will survive for decades to come.
Fossil fuels remain deadly to the environment if governments do not make concerted efforts to get rid of them as the primary energy source. The fuels hold the bulk of crypto assets. However, efforts made by companies like Hive blockchain will create a ripple effect to shift crypto to cleaner energy.