If you‘ve gone anywhere near the internet the last few weeks, you’ve probably discovered that the debate around the energy consumption of bitcoin and other Proof-of-Work (PoW) cryptocurrencies has intensified.
The increased scrutiny came after Tesla announced that it would be discontinuing BTC payments owing to environmental concerns. The electric cars shocking about-face contributed to a vicious sell-off that saw bitcoin tumble more than 50% from its all-time highs posted in April.
Many crypto enthusiasts have argued that approximately 75% of bitcoin mining comes from renewable energy, but this has done little to sway the cryptos loudest critics. With growing attention on the environmental impact of Proof-of-Work, cryptocurrencies like Cardano are emerging as attractive alternatives.
Mainstream publication NBC News has also chimed in on the energy discussion. NBC News published an article titled “Cryptocurrency goes green: Could ‘proof of stake’ offer a solution to energy concerns？”
The publication noted that the price of Cardano (ADA) was able to resist the uncomfortable bearishness that engulfed the crypto market in May. ADA soared to its present record high while its peers plummeted, leading many to wonder what was behind the impressive rally. The cryptocurrency, however, later took a cue from the market and plunged.
NBC postulated in the article that the Proof-of-Stake consensus mechanism that is deemed as a greener alternative to the energy-greedy PoW is already working in the fifth-biggest cryptocurrency by market cap, Cardano. As such, Cardano is the most significant PoS token in the crypto market right now.
NBCs article reads in part:
“”Proof of stake is already working. Cardano uses proof-of-stake and has the fourth-largest market capitalization— $50 billion— of any cryptocurrency as of mid-May. It is currently the most significant proof of stake cryptocurrency on the market.
The imminent launch of ETH 2.0 could pose serious competition for Cardano. While ethereum is making significant progress towards Proof-of-Stake, the upgrade is not likely to go live until later in 2022. Meanwhile, Cardano is readying to launch smart contracts by as early as August once the Alonzo rollout is complete. This undoubtedly increases Cardanos edge over other cryptocurrencies.