The three green, eco-friendly cryptocurrencies that could dethrone Bitcoin and Ethereum

As crypto-currency investors become increasingly aware of the environmental impact of various blockchains, this could lead to a backlash against energy-hungry crypto-currencies such as Bitcoin, which now consumes as much energy as an average-sized European nation each year.

Some countries have already banned bitcoin mining, and some U.S. states have threatened to do the same. In September, the White House even issued a report highlighting the negative effects of bitcoin on the environment and climate.

So perhaps it’s not surprising that some investors are increasingly on the lookout for green, eco-friendly crypto-currencies that could one day replace bitcoin. Three green crypto-currencies that should be on your radar are Cardano, Algorand, and Tezos. All three use low-energy, proof-of-stake blockchains, and all three were highlighted in the White House report.

1. Cardano

Since its launch in 2017, Cardano has distinguished itself as an energy-efficient proof-of-stake blockchain. In fact, until Ethereum moved from a proof-of-work blockchain to a proof-of-stake blockchain this year, Cardano was the poster child for what’s possible with a sustainable, environmentally friendly blockchain. Cardano has consistently received praise from organizations that track blockchain’s green credentials. In the White House report on cryptoassets, Cardano was among the best performing blockchains in terms of electricity consumption and greenhouse gas emissions.

Add in the fact that Cardano offers many of the same features as the Ethereum blockchain, including smart contracts, non-fungible tokens (NFTs), decentralized finance protocols (DeFi), and decentralized applications, and it’s easy to see why many investors are excited about Cardano. The big stumbling block for Cardano, of course, is that few leading companies currently accept Cardano as a payment method. For Cardano to ever surpass Bitcoin, it needs to be much easier for people to transact with ADA.

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2. Algorand

Algorand, founded by award-winning MIT professor Silvio Micali, has been at the forefront of implementing a green crypto strategy to attract new users, developers and investors. For example, on Earth Day this year, Algorand blacked out billboards in New York’s Times Square to draw attention to its environmentally sustainable blockchain. Algorand was also hailed as the world’s first carbon-free blockchain. Algorand is now one of the top 30 crypto-currencies in terms of market capitalization, and is one of the most widely used Tier 1 blockchain networks.

Algorand has found a number of clever ways to reduce the environmental impact of its blockchain. For example, in order to maintain its carbon neutral status, it now uses a portion of its network transaction fees to purchase carbon credits. It also uses smart contracts to offset the carbon footprint of each transaction. Thanks to such efforts, Algorand is one of the few green cryptocurrencies highlighted in the White House report.

3. Tezos

Tezos is definitely the unexpected contender that could one day dethrone bitcoin. That said, it is now among the top 50 cryptocurrencies in terms of market capitalization and has teamed up with a number of high-profile partners and sponsors (including Red Bull Racing, the New York Mets and McLaren) to increase its global name recognition. While it is still earning its stripes as a Tier 1 blockchain competitor, Tezos appears in the White House report as a shining example of what a blockchain could be.

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Tezos is best known for bringing the carbon footprint of various crypto-currencies to the attention of the general public. In 2021, for example, Tezos partnered with the University of Cambridge on a decentralized carbon credit market to support reforestation efforts around the world. It has also been recognized by PwC for its efforts to become an energy-efficient blockchain. To top it off, Tezos has also raised awareness of environmentally friendly NFTs.

Should you invest in green cryptos?

The big question, of course, is whether a green crypto investment is a good crypto investment. Investing in a crypto simply because it does good things for the environment is not enough. However, when a green, eco-friendly strategy is layered on top of a business strategy that makes sense, the choice is a no-brainer. Ethereum is an example of this. As a result of the merger, Ethereum’s energy consumption dropped by 99.9 percent. This is a huge “green bonus“to be obtained for significant gains in speed, efficiency and transaction processing capacity!

The idea that a green, eco-friendly cryptocurrency could one day supplant bitcoin may seem absurd. It’s true. But consider what has happened in the auto industry, where some states are now looking to ban gasoline-powered vehicles, and electric vehicle maker Tesla now has a higher market capitalization than Ford and General Motors combined. In the crypto world, this would be the equivalent of a new green crypto surpassing Bitcoin and Ethereum in market capitalization!

An epic paradigm shift could happen sooner than you think as investors become increasingly aware of the climate and environmental impacts of crypto. When that happens, the valuation of these green cryptos could skyrocket.

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