By
Steve Muchoki
April 29th, 2024
Having an eco-friendly Bitcoin that can be widely used will depend on overcoming such obstacles as accessibility and transparency in the green BTC market.
Bitcoin mining energy use has been a major issue that has cast dark clouds on the environmental impact of the cryptocurrency. However, a recent development suggests a collaborative effort to mitigate this concern. OKX Ventures, the venture capital arm of OKX, the world’s second-largest cryptocurrency exchange by trading volume, has partnered with ReFiDAO and Arkreen as founding partners of GreenBTC.Club.
The partnership aims to deal with the carbon footprint analysis of Bitcoin using a number of techniques, including but not limited to Web3 technologies, Decentralized Physical Infrastructure Networks (DePIN) and regenerative finance (ReFi). As per GreenBTC.Club, their objective is to make Bitcoin’s historical energy consumption carbon neutral and drive widespread usage of eco-friendly Bitcoin assets.
According to CoinShares reports, reducing Bitcoin’s carbon footprint could be a powerful incentive for institutional capital to flood the Bitcoin market and significantly raise the crypto’s price. OKX Ventures and GreenBTC.Club will mitigate environmental concerns as they are also opened up for sustainability and potentially new economic opportunities within the Bitcoin ecosystem.
Although it is a positive move, there are concerns about its long-term success. One of the major challenges is that the company should be able to prove whether its platform has been carbon-neutral for all historical mining processes. Furthermore, having an eco-friendly Bitcoin that can be widely used will depend on overcoming such obstacles as accessibility and transparency in the green Bitcoin market.
Bitcoin Mining’s Environmental Impact
Bitcoin’s massive energy consumption is also contributing to the global e-waste crisis. Bitcoin mining generates 30.7 metric kilotons of e-waste a year, an amount that roughly equates to the total IT and telecommunication equipment waste produced by the Netherlands. Bitcoin’s e-waste could even reach a staggering 64.4 metric kilotons a year, outstripping the anticipated 70% growth in global e-waste between 2016 and 2050.
According to the Cambridge Bitcoin Electricity Consumption Index, 37.84% of all energy-consuming Bitcoin mining is done in the US, which is the highest rate among all countries. This creates a very high carbon footprint for Bitcoin because America has a lot of mining operations concentrated there, and they are powered by fossil fuels.
Despite the difficulties, GreenBTC.Club’s initiative shows a growing awareness in the crypto industry about the importance of sustainable practices. OKX Ventures’ involvement highlights the firm’s commitment to pioneering a greener path for the largest cryptocurrency.
The platform was first presented at the Hong Kong Web3 Festival in April 2023. Arkreen and Hashkey’s ‘greening’ of a Bitcoin block with renewable energy certificates shows what could be done with industry cooperation. GreenBTC.Club’s large-scale voluntary climate action initiative further emphasizes the importance of community participation.