Energy-efficient cryptocurrencies are all the rage after Tesla CEO Elon Musk posted a May 12th tweet that rattled the virtual currency market. Musk stated that Tesla customers could not use Bitcoin (BTC) anymore. Musk stated that Bitcoin (BTC) is too harsh on Mother Nature and that he’s looking for a better coin.
Investors are trying to figure out which green cryptocurrency could replace Bitcoin. Could it be Dogecoin (DOGE)? It’s possible. It is less environmentally destructive than Bitcoin. DOGE uses 0.12 kilowatts an hour, whereas BTC consumes 707 kWh. But DOGE is more eco-friendly than one cryptocurrency.
TRG Datacenters published a study on the most energy-efficient crypto out of a sample of popular altcoins. According to TRG Datacenter’s analysis, these are Tesla’s top green choices to replace Bitcoin.
Which cryptocurrency is the most efficient in terms of energy?
Ripple (XRP) is the most efficient cryptocurrency. It consumes just 0.0079 kWh per transaction. You need to compare Ripple to Bitcoin to understand why it is the most eco-friendly altcoin fully.
Bitcoin uses the proof of work (PoW) protocol. PoW is a network of miners that compete to solve cryptographic puzzles. They also verify transactions with a lot of computational power. As a reward, the first miner who solves the puzzle wins BTC. It is not hard to imagine that thousands of miners trying to outpower each other will lead to an environmentally unfriendly system.
Ripple does not use PoW. Instead, it uses a consensus protocol that prompts its network to “vote” on an incoming transaction’s integrity. If 80% of the transaction agrees, it is approved to be entered into the Ripple block.
Although XRP is the most efficient cryptocurrency, it is unlikely that Tesla will choose it as its new currency. The U.S. Securities and Exchange Commission (SEC) slapped Ripple with a lawsuit last year, and Tesla may want to steer clear of litigation-bound coins.
1.Bitcoin (BTC-USD)
Bitcoin is, in many ways, the crypto industry in its simplest form for investors. The digital asset was created in 2009 and has become a household name.Although the crypto experienced a remarkable bull run between 2015 and 2017, its price plummeted after that, and many people fear its demise.
Bitcoin rebounded last year to deliver gains of more than 260%. It has an unmatched growth runway, despite the competition and regulatory hurdles. BTC has pulled back sharply of late due to the regulatory crackdowns by various governments, especially in China.
There have been concerns about whether cryptocurrency is harmful to the environment due to its large energy consumption. But, this concern will likely fade over time because of the popularity and utility of the crypto.
2. Ethereum (ETHUSD)
Ethereum, with a market capitalization of $269 billion, is the second-largest cryptocurrency. ETH’s growth has been more than 854% in the last year than BTC.
It has one of the strongest bull cases in the industry, thanks to multiple growth drivers. Its upcoming ETH 2.0 upgrade will be a key factor in expanding decentralized financing (DeFi).
The update is expected to be completed by 2022. It marks the transition of the platform’s proof-of-work model to a proof-of-stake model. The update will make the platform more secure, efficient, and robust.
It will also facilitate the expansion and growth of DeFi projects. These will continue to grow at a rapid pace. Its upcoming upgrade and relevance in the DeFi realm could knock Bitcoin off its perch.
3. Litecoin (LTC/USD)
Litecoin, which has a market capitalization of more than $9.2 million, is one of the most important cryptos in the sector. A fork created it in Bitcoin’s blockchain. This is the oldest cryptocurrency in the market. It has risen by an amazing 215% over the past twelve months. It has been slipping a lot of late.
LTC has seen signs of a rebound in the last week. This indicates that it is experiencing a reverse of fortunes. LTC is similar to BTC in that it is open-sourced, highly decentralized, and has a high degree of decentralization. It is also quicker than BTC, as it takes only 2.5 minutes per transaction, rather than nine minutes. It also has a 40% lower transaction cost than Bitcoin.
It’s been a difficult battle to keep its market share and brand equity. It will be difficult to surpass industry veterans, but its unique features and value to users make it a viable long-term option.
4. Tether (USDT/USD)
Tether, a cryptocurrency that isn’t as well-known as its peers, doesn’t get much attention. It is, however, the third most valuable crypto worldwide with a market capitalization of $62 billion.
Because it is a stable currency, it stands out from the rest. It can be pegged to fiat currencies such as the Euro or the U.S. dollars. It is therefore attractive to investors who don’t want the volatility associated with investing in cryptocurrency.
Tether is more of a store-of-value and exchange medium than a speculative investment. Investors can increase stability in their crypto portfolios by adding USDT that is backed with fiat currencies.
5. Stellar Lumens (XLM-USD)
Stellar Lumens, one of the most promising DeFi initiatives in the crypto-world, is Stellar Lumens. It is valued at over $6 billion, and its market cap has increased by 260% over the past twelve months. It has done an amazing job in building a utility that its users can use as a cross-border payments platform.
Ultimately, XLM’s goal is to work alongside traditional banks. This lofty goal will ensure that it grows at a steady pace in the future. Stellar is investing aggressively in its platform and expanding its goals—Stellar Development Fund (SDF).
A massive $750,000 was invested in Nigerian fintech company Cowrie. In building a platform for local citizens for cross-border payment. It was established earlier this year. Signed an agreement with Ukraine’s government they will use the funds to create a national digital currency. Horizon 2.0 is a new, robust update that will improve the network’s flexibility and efficiency.
6. Binance Coin (BNB – USD)
Binance Coin has more than doubled in 2020 and has increased 733% from January. BNB has greatly benefited from the integrations with Binance.
The Binance Chain allows multiple blockchain applications to be hosted. Binance Earn is another option, offering passive income services and products to Binance users. BNB is constantly developing new products and services to provide strong returns to its owners in the future.
Binance Coin, the top cryptocurrency exchange in the world, is an easy crypto investment. Each day, the exchange receives thousands of trades in crypto. BNB’s bull case is expected to grow with the support of the largest exchange and the addition of several new products.
7. Cardano (ADA-USD)
Cardano, an energy-efficient proof of stake altcoin, is the fifth most valuable cryptocurrency worldwide. In the last 12 months, the ADA token has risen by 1,259%. Although it trades at a dollar and some change right now, analysts believe it could soon reach $10 as an energy-efficient alternative for Ethereum and Bitcoin.
Coinbase added Cardano back to its platform in March of this year. Due to its huge energy consumption, Tesla later removed Bitcoin from its website as a payment option. These factors have significantly increased the price of ADA. Alonzo, a smart contract platform that ADA launched, will increase its utility in DeFi.
Muslim Farooque had no positions (directly or indirectly) in any securities at the time of publication. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Muslim Farooque is an investor at heart and an optimist. He is a lifelong gamer and a tech enthusiast. He has a special affinity for the analysis of technology stocks. Muslim has a bachelor of science in applied accounting from Oxford Brookes University.
FAQ
Are crypto investments a wise investment?
Crypto assets can be risky, but they could also prove to be extremely lucrative. If you want to get direct exposure to digital currency demand, cryptocurrency can be a great investment. While this is a safer but less lucrative option, it’s possible to purchase stocks of companies that have exposure to cryptocurrency.
Is XRP a good deal?
It is already one of the most popular cryptocurrencies and could be a significant investment opportunity. XRP is a cryptocurrency investment opportunity you might have found if you aren’t looking to buy Bitcoin. … Cryptocurrencies can be high-risk, high-reward investments.XRP is riskier than the average coin.
What crypto doesn’t require mining?
Nano (NANO) NanoIt is fast, free, and consumes significantly less energy than Bitcoin or other cryptocurrencies. It’s been around since 2015, and it has a very small carbon footprint. It’s also lightweight and scalable because it doesn’t depend on mining.
What is ripple worth in 2025?
This would mean that the adoption rate will have reached a point where it is easier and more convenient for users to trade and transact with the currency. The asset’s projected maximum value is 2025.$8It could be as low as $4, but it could still be as high as $6.
What value will litecoin have in 2025?
It predicts that Litecoin’s value could reach $550 by 2021. Then, it will rise to $1,100 in 2022. This would give Litecoin a mean price of $650.$3,500 in 2025. Crypto Research Report Group, a cryptocurrency research company, calls for Litecoin’s value to rise to $3,500 in 2025 and $7,250 by 2030.
