Post by account_disabled on Feb 27, 2024 4:51:49 GMT
Investments are undergoing big changes. Consumers and investors concerned about social and climate problems seek to invest in businesses that reflect their values. In 2021 alone, the bet on funds with ESG (environmental, social and governance) criteria in the US registered an increase of 35% compared to 2020 , according to the provider of analysis and evaluations of financial products, Morningstar.
Despite the record growth of ESG, also known as sustainable or socially responsible , investing , this trend has not yet reached mass adoption, Betterment research revealed.
Overall, the latter found that 80% of Chinese American Phone Number List investors who allocate resources to ESG issues have money in cryptocurrencies. While 22% without capital in sustainability, have their portfolio in cryptography.
Bitcoin and responsible investment
According to CNBC , although the investment aims at sustainability, partly due to scrutiny and environmental and social concerns, doubts about these still persist, opening the way to other types of financing, such as those for cryptocurrencies.
Bitcoin is the name of the best-known cryptocurrency, for which blockchain technology was invented . These types of units are a digital medium of exchange—like the dollar—and use encryption techniques to control the creation and verify the transfer of funds.
Investment in these assets has been strongly questioned due to their great environmental impact, since it is estimated that a single bitcoin transaction has the same carbon footprint as an average home, for an entire month.
As indicated by Blue and Green Tomorrow , there have been many efforts by organizations to minimize their environmental impact and provide ecological alternatives to Bitcoin, since it is far from being the most sustainable currency . But there are others that are better in this regard, which could give them an advantage as consumers express greater concern about sustainability and some are proving to be more environmentally friendly.
5 eco-friendly alternatives to Bitcoin
1. Stellar
It is one of the cryptocurrencies, developed by Stellar Development Foundation. It was launched in 2014 and allows for a faster and more cost-effective mode of transactions. Additionally, it is considered a strong alternative to PayPal for cash transactions.
Stellar is one of the ecological alternatives to Bitcoin, because it consumes less energy to create and maintain the ledger - a virtual record in which all the movements made within the blockchain are contained - and it has different ways of use.
For example, it can be integrated with e-commerce payment companies, p2p loans and finance, microinsurance, cash transfers, mobile payments, etc. However, the only drawback is that unlike other cryptocurrencies, the ledger is very centralized.
2. Cardano
It is one of the largest according to market capitalization. Cardano is said to be the next generation of the Ethereum cryptocurrency idea as it has a flexible blockchain. And it is a sustainable and scalable platform for running smart contracts.
Cardano primarily aims to become the most environmentally sustainable as it uses a unique proof-of-stake consensus mechanism called Ouroboros. Therefore, it does not implement high energy consumption protocols, such as the proof-of-work system used by Bitcoin or Ethereum.
The downside is that it lacks smart contract functionality. In contrast, Ethereum is moving to a proof-of-stake system via the ETH2 upgrade. Therefore, in the future, it would be difficult for Cardano to compete with its main rival.
3.BNB
It is one of the best -known tokens —a unit of value based on cryptography and blockchain , issued by a private entity to have a specific digital functionality—in the world. BNB can trade other cryptocurrencies through Binance and has a wide range of applications.
It can be used to pay for goods and services, settle transaction fees on Binance Smart Chain, participate in exclusive sales, and more. BNB was initially created as a token hosted on the popular Ethereum network. But, in September 2020, Binance launched its Binance Smart Chain or BSC, an Ethereum alternative that comes with the same features and functionalities, coupled with an extremely low impact on the environment.
Despite the record growth of ESG, also known as sustainable or socially responsible , investing , this trend has not yet reached mass adoption, Betterment research revealed.
Overall, the latter found that 80% of Chinese American Phone Number List investors who allocate resources to ESG issues have money in cryptocurrencies. While 22% without capital in sustainability, have their portfolio in cryptography.
Bitcoin and responsible investment
According to CNBC , although the investment aims at sustainability, partly due to scrutiny and environmental and social concerns, doubts about these still persist, opening the way to other types of financing, such as those for cryptocurrencies.
Bitcoin is the name of the best-known cryptocurrency, for which blockchain technology was invented . These types of units are a digital medium of exchange—like the dollar—and use encryption techniques to control the creation and verify the transfer of funds.
Investment in these assets has been strongly questioned due to their great environmental impact, since it is estimated that a single bitcoin transaction has the same carbon footprint as an average home, for an entire month.
As indicated by Blue and Green Tomorrow , there have been many efforts by organizations to minimize their environmental impact and provide ecological alternatives to Bitcoin, since it is far from being the most sustainable currency . But there are others that are better in this regard, which could give them an advantage as consumers express greater concern about sustainability and some are proving to be more environmentally friendly.
5 eco-friendly alternatives to Bitcoin
1. Stellar
It is one of the cryptocurrencies, developed by Stellar Development Foundation. It was launched in 2014 and allows for a faster and more cost-effective mode of transactions. Additionally, it is considered a strong alternative to PayPal for cash transactions.
Stellar is one of the ecological alternatives to Bitcoin, because it consumes less energy to create and maintain the ledger - a virtual record in which all the movements made within the blockchain are contained - and it has different ways of use.
For example, it can be integrated with e-commerce payment companies, p2p loans and finance, microinsurance, cash transfers, mobile payments, etc. However, the only drawback is that unlike other cryptocurrencies, the ledger is very centralized.
2. Cardano
It is one of the largest according to market capitalization. Cardano is said to be the next generation of the Ethereum cryptocurrency idea as it has a flexible blockchain. And it is a sustainable and scalable platform for running smart contracts.
Cardano primarily aims to become the most environmentally sustainable as it uses a unique proof-of-stake consensus mechanism called Ouroboros. Therefore, it does not implement high energy consumption protocols, such as the proof-of-work system used by Bitcoin or Ethereum.
The downside is that it lacks smart contract functionality. In contrast, Ethereum is moving to a proof-of-stake system via the ETH2 upgrade. Therefore, in the future, it would be difficult for Cardano to compete with its main rival.
3.BNB
It is one of the best -known tokens —a unit of value based on cryptography and blockchain , issued by a private entity to have a specific digital functionality—in the world. BNB can trade other cryptocurrencies through Binance and has a wide range of applications.
It can be used to pay for goods and services, settle transaction fees on Binance Smart Chain, participate in exclusive sales, and more. BNB was initially created as a token hosted on the popular Ethereum network. But, in September 2020, Binance launched its Binance Smart Chain or BSC, an Ethereum alternative that comes with the same features and functionalities, coupled with an extremely low impact on the environment.