3 Green, Eco-Friendly Cryptos That Can Take Over Bitcoin

As crypto investors become more aware of the environmental impact of various blockchains, it may lead to a backlash against energy-intensive cryptocurrencies such as Bitcoin (BTC 3.45%), which now uses as much energy as a medium-sized European nation each year. Already, some countries have completely banned Bitcoin mining, and some US states have threatened to do the same. In September, the White House even published a report highlighting the negative environmental and climate effects of Bitcoin.

Perhaps unsurprisingly, some investors are increasingly looking for green, eco-friendly cryptocurrencies that could one day replace Bitcoin. Three green cryptos that should be on your radar include Cardano (ADA 6.71%), Algorand (ALGO 5.79%)and Tezos (XTZ 3.68%). All three use energy-efficient, proof-of-stake blockchains, and all three were highlighted in the White House report.

1. Cardano

Since its launch back in 2017, Cardano has distinguished itself as an energy-efficient proof-of-stake blockchain. Actually until Ethereum (ETH 8.77%) Transitioning from a proof-of-work blockchain to a proof-of-stake blockchain earlier this year, Cardano was the poster child of what is possible with a sustainable, environmentally friendly blockchain. Cardano has consistently received praise from organizations tracking the green credentials of blockchains. In the White House report on cryptoassets, Cardano emerged as one of the top blockchain performers in terms of electricity use and greenhouse gas emissions.

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Add in the fact that Cardano offers much of the same functionality as the Ethereum blockchain, including smart contracts, non-fungible tokens (NFTs), decentralized finance protocols (DeFi) and decentralized applications, and it’s easy to see why many investors are excited. about Cardano. Of course, the big stumbling block for Cardano is that few high-profile businesses actually accept Cardano as payment right now. For Cardano to overtake Bitcoin one day, it needs to be much easier for people to transact with ADA.

2. Algorand

Algorand, founded by award-winning MIT professor Silvio Micali, has been at the forefront of implementing a green crypto strategy to attract new users, developers and investors. For example, for Earth Day this year, Algorand responded to billboards in New York’s Times Square as a way to bring attention to its environmentally sustainable blockchain. Algorand has also won recognition as the world’s first carbon-negative blockchain. Algorand is now a top-30 crypto by market cap, as well as one of the most recognized Layer 1 blockchain networks.

Algorand has found a number of clever ways to reduce the environmental impact of its blockchain. For example, to maintain its carbon negative status, it now uses a portion of its network transaction fees to purchase carbon credits. It also uses smart contracts to offset the carbon footprint of each transaction. As a result of efforts like these, Algorand was one of only a handful of green cryptos highlighted in the White House report.

3. Tezos

Tezos is definitely the dark horse candidate to take over Bitcoin one day. That said, it is now a top-50 crypto by market capitalization and has partnered with a number of high-profile partners and sponsors (including Red Bull Racing, the New York Mets, and McLaren) to expand its name recognition on a worldwide basis. While still earning its chops as a top Layer 1 blockchain competitor, Tezos appeared in the White House report as a shining example of what a blockchain can be.

Tezos is best known for bringing mainstream attention to the carbon footprints of various cryptocurrencies. In 2021, for example, Tezos partnered with the University of Cambridge on a decentralized carbon credit marketplace to support global reforestation efforts. It has also received recognition from PwC for its efforts to become an energy-efficient blockchain. On top of that, Tezos has also increased public awareness of eco-friendly NFTs.

Should you invest in green cryptos?

The big question is of course whether a green crypto investment is a good crypto investment. It is not enough to invest in a crypto because it does good things for the environment. But when a green, environmentally friendly strategy is layered on top of a business strategy that makes sense, the choice is easy. An example would be Ethereum. As a result of The Merge, Ethereum’s energy consumption dropped by 99.9%. It’s a big “green bonus” to get for huge gains in speed, efficiency and transaction capacity!

The idea of ​​a green, eco-friendly crypto ever surpassing Bitcoin may sound absurd. Fair enough. But just consider what has happened in the automotive industry, where some states now want to ban gas-powered vehicles, and where the manufacturer of electric vehicles Tesla (TSLA 1.52%) reach a higher market value than Ford (F 2.00%) and General Motors (GM 1.81%) combined. It will be the equivalent in the crypto world of a new green crypto that surpasses Bitcoin and Ethereum in terms of market capitalization!

So keep an eye on what’s happening in the crypto world. An epic paradigm shift may be coming sooner than you think, as investors become increasingly aware of the climate and environmental impacts of crypto. When that happens, these green cryptos can rise in value.