The intersection of cryptocurrency and renewable investments

Technology is limitless. Who would ever have thought that we would see a day where renewable energy and crypto work together? You see, there has been a lot of talk in the energy sector, considering that crypto uses a lot of energy, especially for mining and distribution. For example, in 2019, Bitcoin alone had a consumption of 143TWh. This was higher than that of Norway (124TWh) and Bangladesh (71TWh). And mark you, this was just Bitcoin mining. You haven’t added the other cryptocurrencies. 

However, crypto is starting to prove that it can be a reliable source of financing for projects focusing on producing and supporting renewable energy sources. Just imagine if you took Bitcoin and how well it’s performing and used it for investments. Right now, bitcoin price usd has already crossed the $100,000 mark, and experts are saying that the potential is too much. According to experts, bitcoin might even cross $500,000 by 2030. Now, taking such a token for renewable financing will prove to be really impactful. 

Crypto moving towards sustainability

Well, it’s true that crypto uses a lot of energy. That’s a fact. But again, there are many other industries that utilise a lot of energy, but their output is worthwhile. The question we actually should be asking is whether what the energy is being used for is worth the hustle. And also, is there another side of the story? For crypto, yes, there is. You see, crypto has been moving towards sustainability by using technology that cuts almost 100% of the energy that is used. 

For example, when Ethereum changed from proof-of-work to proof-of-stake, it reduced its energy consumption by 99.95%. Now, Juunu Saloovara of crypto firm Likvidi stated that before the merge, one Ethereum transaction required energy that would equate to power used by one US household for a whole week. However, post-merge, the energy required for one transaction is equal to just a boiling kettle. This just goes to show that crypto is not only helping to support the sustainable energy movement but is also working towards sustainability. 

Why is crypto a good choice for renewable investments?

Just as we said, crypto has become a reliable source of financing for renewable investments. But why is this the case? 

Decentralisation 

Blockchain-based DeFi platforms have turned out to be alternatives to traditional sources of funding for renewable energy projects. These platforms facilitate crowdfunding of renewable energy initiatives, which give individuals and companies the opportunity to directly inject into their preferred choice. 

A good example of this is in May 2022, when Engie, a French energy company, launched an initiative in Africa to increase the use of off-grid solar solutions. Engie collaborated with Energy Web, the provider of EWT crypto, in order to come up with a crowdfunding platform. Within six days, the crowdfund had already reached its target of 20,000 EWT, a feat that had been scheduled for two weeks. According to…