The sustainability of cryptocurrencies has been a major topic of discussion for the past two weeks, as many have pointed to the environmental concerns of crypto mining. Tron Foundation founder Justin Sun has also lent his voice in the debate. He was speaking to CNBC on the ‘Squawk on the Street’ show, discussing volatility and his outlook for crypto assets.
Crypto Industry Needs To Deal With Mining Issues
Sun agreed that Tesla boss Elon Musk has influenced recent crypto-related issues. He admitted that Musk’s tweets and the decision to stop Tesla’s acceptance of Bitcoin contributed to the recent backlash Bitcoin and cryptocurrencies are receiving.
However, he noted that Musk’s concerns are genuine and that the crypto industry needs to find ways to address the issues raised. He stated that the industry needs to find ways to make Bitcoin (BTC / USD) energy-friendly crypto.
Using proof of stake to solve cryptocurrency energy problems
Proof-of-stake (POS) technology has been described as the alternative option for the crypto industry that can eliminate the use of fossil fuels for crypto mining. Sun noted that the Tron Foundation uses POS technology, which can significantly reduce the rate of power consumption by 99.9% in the industry. He stated,
With proof of stake, you don’t need mining machines to produce blocks.
Crypto has gone from early adoption to mainstream adoption
When asked about his thoughts on the future of cryptocurrencies, Trun stated that the industry will see increased institutional and consumer interest, despite current challenges. He believes that the crypto industry is still in its infantry stage. Sun added that the non-fungible token (NFT) is an easy way to understand how blockchain works.
The NFT industry is also in its infancy and is expected to grow at a rapid rate. “I think this year we will start to see the first million NFT collectors,” he said, noting that the number will increase to around 100 million in the next 5 to 10 years.
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