Financial regulators have frequently highlighted the environmental concerns associated with cryptocurrencies. A recent study by Forex Suggest indicates that to balance the ecological impact of Bitcoin’s emissions over the past year, an astonishing 431.6 million trees would need to be planted.
The research assessed the fluctuations in the environmental impact of various leading cryptocurrencies since 2021, shedding light on the effects of crypto mining and trading on the environment. Bitcoin, favored by both novice investors and institutional players, tops the list of polluters. It is estimated that Bitcoin’s carbon footprint for 2022 will reach approximately 86.3 million tons of CO2. To neutralize these emissions, 431.6 million trees would need to be planted.
Previous studies have noted that the energy necessary to conduct a single Bitcoin transaction could sustain an average household for more than 70 days. Following Bitcoin in the rankings are Litecoin and Bitcoin Cash, with Cardano’s emissions also increasing.
In contrast, Ethereum has made significant strides in minimizing its carbon emissions, achieving an almost complete reduction post-transition to a proof-of-stake blockchain. This change has not only substantially lowered gas fees but also accelerated transaction processing. In 2021, Ethereum emitted 21.95 million tons of CO2, but this figure has dramatically dropped to just 8,824 tons. To offset its current annual emissions, it would require the planting of 44,121 trees.
In terms of environmental friendliness, Stellar emerges as the leading cryptocurrency, with an exceptionally low energy consumption of only 0.0003 kWh per transaction. Moreover, Stellar’s transaction costs are remarkably low, often less than a cent.