19 Environmentally Friendly Cryptocurrencies That Will Save the Planet

While cryptocurrencies depend on the use of energy to generate their value, environmentally friendly cryptocurrencies do exist. These green crypto options offer a low carbon footprint — and can even provide real benefits for the environment. Finding the most energy-efficient cryptocurrency can help you to make environmentally responsible decisions about your investment strategies. This, in turn, can promote a greener future for the entire planet. Here’s an introduction to the basics of sustainable cryptocurrency for investors.

Do Cryptocurrencies Use a Lot of Energy?

Some cryptocurrencies use a lot of energy because they require substantial computing power on the part of nodes to solve extremely complex mathematical problems. This is how the nodes provide proof of work (PoW) to support the value of the cryptocurrency. For example, Forbes notes that much of Bitcoin’s energy use can be attributed to its adoption of a PoW verification system. 

PoW systems award cryptocurrency only to the computing system that offers the final piece of a computation puzzle, which means that a large portion of the work and energy expended by numerous nodes will be wasted. By contrast, proof of stake (PoS) systems require a small investment on the part of miners, who are then allowed to enter a lottery to verify transactions. 

Transitioning from PoW to PoS systems will significantly reduce the energy needed to generate cryptocurrency. For green-conscious investors, finding low-energy cryptocurrency options can provide additional ways to save energy and protect the planet.