In this section, we will be discussing about the environmental impact of crypto and its energy consumptions annunally. We would also be analysing the differences between Poof of Work and Proof of Stake coins.
The map below displays the top countries involved with Bitcoin mining. Data is displayed by their computational hash rate in percentages after China bans all cryptocurrency transaction and mining. Note that China was involved with more than 75% of the global hash rate before the ban and closing down of mining farms in March 2021. This caused many miners to flee to Kazakhstan and America to continue their endeavours. Below is a map displaying countries hashrate in Jan '22'. As you can see China still has mining operations even after the ban as miners would use VPN spoofing to keep authorities at bay.
The general worry is the kind of energy that these countries were using to produce the electricity required to power the computers were going to emit excessive amounts of Co2. Kazakhstan use the burning of fossil fuels like coal to power most of their bitcoin mining operation as it is cheaper alternative than renewable energy like hydro-electricity and wind energy. In the end of 2022 the Bitcoin mining industry's sustainable energy mix was estimated to be at 59.4%.
These graphs below showcase top 10 Proof of work (purple), Proof of stake (blue) and alternative coins (red).
This donut graph represents the total marketshare of crypto of 1.25T USD and the dominance of Proof of Work Coins over Proof of Stake and alternative coins in percentages on 17/4/23.
This represents the top 10 coins in the marketplace, their specific market capitalizations and their authentication algorithm.
Average transactions per day for Bitcoin (proof of work) and Ethereum (proof of stake) in 2022. Ethereum has outperformed Bitcoin by 338% in 2022.
Due to the growing concerns of Bitcoin mining and the Proof of Work consensus algorithm using alot of energy. Many like the famous Elon Musk have growing concerns of greenhouse gas emission and climate change. Ethereum was Proof of Work coin before 15 September 2022 but merged to be a Proof of Stake coin cutting electricity emissions by 99.9%. Proof of stake coins also have faster transfer speeds and also cheaper rates than its Proof of Work competitor.
Highest average annual electricity consumption by Ethereum before switching to Proof of Stake in terawatt-hours (TWh)
Average annual electircity consumption after the switch to Proof of Stake in terawatt-hours (TWh)
The average annual electricity consumption by Bitcoin surpassing countries electricity consumption like Norway