Elon Musk shocked the crypto world Wednesday night when he announced that Tesla would not accept bitcoin as payment, because its “crazy” use of energy threatens the environment.
Bitcoin mining uses more energy each year than Sweden, according to Cambridge University researchers. More than 70% of mining is done in China, according to Bank of America analysts, where coal energy dominates.
But Musk said in his book: Tweet announcing the decision That Tesla weighs other cryptocurrencies that use less energy.
“With over 9,500 other cryptocurrencies available, Elon Musk has a huge number of options to choose from,” Catherine Waller, managing director of cryptocurrency exchange Dacxi, told Insider.
Here are five you might consider.
Ether is the second largest cryptocurrency after Bitcoin, with a total market capitalization of over $400 billion.
Currently, the Ethereum Network’s Ethereum network uses the same “Proof of Work” mining and security system as Bitcoin. It’s incredibly power-intensive, and involves huge numbers of computers to solve puzzles to keep the network safe.
But the ether is set to migrate to a “proof of stake” system which the Ethereum developers say will be much less power-consuming.
“The back of the envelope calculation indicates that under the Proof of Stake, we’ll be using less than a thousandth of power,” Ben Eddington, from Ethereum developer ConsenSys, told Insider.
However, the change in ether is not due to occur until the end of this year or early 2022, during which time the energy consumption is set to continue.
Cardano is a blockchain network, running the ada cryptocurrency, which actually uses a proof of stake system. This means that network users validate transactions and get rewards in cryptocurrency according to the number of coins they own and are willing to give as a kind of down payment.
Cardano uses a fraction of bitcoin’s energy, at 0.55 kWh per transaction, compared to 707 kWh of bitcoin, according to internet infrastructure firm TRG Datacenters.
XRP is the cryptocurrency with the least environmental damage, according to TRG, using 0.0079 kWh of energy per transaction.
The cryptocurrency, associated with the development company Ripple, is the seventh largest. Ripple said last week that its XRP sales nearly doubled in the first quarter of the year to $150 million.
Ripple has had legal issues with the company, which is currently involved in a dispute with the Securities and Exchange Commission over whether XRP is a security or a currency.
Chia is a new “green” digital currency that started trading in early May. It was created by Bram Cohen, the inventor of BitTorrent, and uses what’s called a “space and time proofs” system. Its creator says that people grow cryptocurrency, not my business.
It has attracted investors but is still small, with a market capitalization of $550 million compared to Bitcoin’s close to $1 trillion.
The cryptocurrency was often promoted by Elon Musk, which started as a joke and was based on an online dog meme.
he Tweet Poll Last week, he asks, “Do you want to kiss a Tesla Doge?” His followers overwhelmingly said yes.
However, Dogecoin’s design has been criticized by many crypto experts, especially the fact that it has an unlimited supply.
“The cynic in me is calling him not to morph into Dogecoin, which is at best a novelty, and at worst an embarrassment to the crypto industry,” Waller said.