Ethereum founder Vitalik Buterin has weighed in on the ongoing debate on Bitcoin mining. He stated that Ethereum’s transition to the proof-of-stake (POS) model could be a viable solution to cryptocurrencies’ high power consumption problem. He said,
Proof of Stake is a solution to Bitcoin’s environmental problems that takes far fewer resources to maintain.
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Last month, the Ethereum Foundation revealed its imminent transition to the POS system, with the final change expected to be completed by the end of the year.
Environmental impact of Bitcoin mining
Buterin’s statement on the POS model comes at a time when Bitcoin (BTC / USD) mining has received a lot of criticism. Many have argued about the environmental implications of crypto mining. Earlier this week, Iran temporarily banned crypto mining, citing the need to preserve the increasingly scarce power supply in the country.
The environmental issue with Bitcoin mining also influenced Tesla’s decision to suspend acceptance of the cryptocurrency for payments for its products.
Other experts have commented on the matter, some opposing Bitcoin mining and some supporting.
Last week, China’s State Council revealed that it will impose stricter regulations on “illegal securities activities,” including those operating crypto trading and mining activities.
The government jumped into action immediately after determining that cryptocurrency mining has led to high use of coal in some parts of China. The Chinese government took action against those miners because it undermined the country’s environmental goals.
The low power consumption of the proof of stake
Ethereum Foundation recently stated on its website that successful POS transition can reduce Ethereum’s power consumption by 99.8%. He added that an Ethereum POS consumes around 2.62 megawatts. According to the platform, it is significantly lower than the current level that is equivalent to the energy consumption of a medium-sized country.
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