The Green Crypto Revolution and Why It Is Important

Cryptocurrency has been coined as the biggest financial innovation of the Fourth Industrial Revolution. The global cryptocurrencies market is estimated to reach US$45.3bn in 2025. The possibilities of reshaping the economy with cryptocurrencies are numerous and yet to be explored. However, as the use of cryptocurrencies increases, so do the environmental concerns surrounding crypto mining.

The environmental concerns of crypto mining

Crypto mining involves using specialized computers to solve complex cryptographic puzzles, verify them, and add this new block to a fixed public ledger to earn cryptocurrencies. This process is extremely time-consuming and energy-intensive, hence the rise in concerns about the environmental impact of crypto mining. Some of the most significant environmental concerns of crypto mining include:

• Rise of electronic waste

Crypto mining hardware, Processing Units (GPU) and Application-Specific Integrated Circuit (ASIC) machines, have a limited lifespan and thus need to be disposed of when they can no longer be used. Additionally, thanks to the rapid evolution in technology, crypto-mining hardware is always being upgraded. Unfortunately, a majority of crypto mining hardware can’t be recycled and is thus likely to end up in landfills. Addressing the resulting electronic waste from crypto mining is an environmental challenge that can no longer be ignored.

• High energy consumption

A study by the United Nations University found that between 2020 and 2021, the mining of Bitcoin globally used up 173.42 Terawatt hours of electricity. This electricity consumption was higher than the yearly energy consumption in a country like Pakistan, which had more than 230 million people. 

While Bitcoin is one of the most popular cryptos, it is only one of the over 13,000 cryptocurrencies mined globally today. This rise of cryptocurrency has led to the rise of global electricity consumption, yet electricity is not an infinite component, especially electricity generated from non-renewable sources.

• Increased carbon footprint

Crypto mining relies on electricity, and electricity generation relies on fossil fuel-powered energy sources such as coal and natural gas. These energy sources emit a lot of carbon, which largely contributes to global warming. To negate the impact of carbon emissions produced by the crypto industry, more than 4 billion trees need to be planted.

Reducing the global carbon footprint is the UN’s 13th Sustainable Development Goal, and every industry is making an effort to play its part. For example, the casino industry has made huge strides in transitioning its services online in an effort to reduce its carbon footprint. Today, most, if not all, established casinos have websites where you can play on the go. The crypto industry is also now getting on the green crypto movement, with both cryptocurrencies and cryptocurrency mining firms making significant strides in the revolution.

Cardano (ADA): Leading the eco-friendly cryptocurrency movement

The traditional process of mining cryptocurrency by competing to solve complex puzzles is referred to as a Proof-of-Work (PoW) consensus mechanism. This process, as already stated, consumes very large amounts of energy, and thus, if the cryptocurrency market is to go green, adopting a more energy-efficient process of obtaining crypto is the best place to begin. This is where the Proof-of-Stake (PoS) consensus mechanism comes in. 

The PoS consensus involves staking a certain amount of crypto as collateral before you can create new blocks on the network. This new consensus mechanism eliminates the need to mine cryptocurrency, therefore significantly reducing energy consumption in the crypto industry. 

Cardano (ADA) was among the earliest cryptos to be founded on the Proof-of-Stake consensus mechanism, hence positioning itself as the forerunner in the eco-friendly cryptocurrency revolution. This commitment to sustainability has made ADA one of the go-to options for environmentally conscious crypto investors. This is evident with the crypto market capitalization being valued at 13 billion USD as of January 2025. 

In the long term, Cardano plans to be the globe's most sustainable blockchain. This will be achieved by not only reducing the energy consumption in the crypto-obtaining process but also ensuring almost zero carbon emissions from crypto activities. Cardano aims to achieve this milestone by integrating renewable energy into its network infrastructure, just like the crypto mining firm HIVE Digital Technologies.

HIVE Digital Technologies: Crypto mining firm changing the narrative

When shifting to the PoS consensus mechanism is not possible, another environmentally friendly option being introduced in the crypto industry is the use of renewable energy sources for cryptocurrency mining operations. HIVE Digital Technologies is one of the leading crypto mining firms investing in using renewable energy for their operations. 

In a recent interview, Frank Holmes, HIVE’s Executive Chairman, confirmed that the firm aims to have 2% of the world's production of crypto sourced using renewable energy. The firm is particularly keen on using hydroelectricity to reduce the use of fossil fuels and thus, in turn, reduce its carbon footprint.

The crypto industry can explore other renewable energy solutions such as geothermal, wind, and solar. The use of clean energy to power the crypto industry will make it possible to reduce the negative environmental impacts of cryptocurrency use while still maintaining profitability in the market. As crypto becomes more popular and more mainstream, the industry must go green if it is to be sustainable.