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Do you have experiences with energy efficient cryptocurrencies?

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aisthi

aisthi

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Hi everyone, I wanted to ask how many of you invest in energy efficient cryptocurrencies. What are your experiences with it? A friend of mine has been investing since last year and has already made decent profits... but most of them being energy expensive cryptocurrencies, such as Bitcoin. I am aware that certain cryptocurrencies, for example BTC, require a lot of energy and are of course not really good for the environment (ok, in general, they won't change a lot if nobody uses them, but still there is this "negative" twist in it). But to me, environment is actually an important issue, and I was looking for alternatives. Are there actually energy efficient cryptocurrencies at all? I assume that there should already be a lot of options and in the future energy efficient coins might have a lot of potential... Thank you already for your recommendations/answers!
 
Dash is an energy efficient cryptocurrency, 36% of the block reward goes to the miners, 54% goes to the masternodes and the remaining 10% goes to fund the network in the DAO. Compared to Bitcoin, 100% of the block reward goes to the miners. Also, if you look at the wattage used by Dash compared to Bitcoin it is a tiny fraction of it, yet Dash is way more useful than Bitcoin. It is possible in the future the reward allocated to mining will be reduced further, that would probably not happen until May 2025.
 
From a personal point of view I am already doing a lot to protect the environment (going by bike, collecting trash, saving energy at home, buying consciously etc.). I always think twice before doing something that might could harm the nature. As I am an adventurer who spends a lot of time outdoors I simply know how important it is to protect this beauty… So while starting with cryptocurrencies I browsed around to find coins or new projects that have an eye on this as well. (That’s also a reason I registered here – thanks @xkcd for the details on how dash takes part in environment protection).

So apart from that I for example came across Idena (I think its quite new), as they use a proof of personhood concept instead of proof of work or proof of stake (which is common with the well established coins such as bitcoin for example). Based on this concept only a validated human being is able to mine which (as far as I have gotten it right) avoids robots and computers to mine consistently using high efficient graphic cards etc. The basic idea is a quite democratic one, so that everyone earns the same amount and is equally able to take part (not presuming to have high end technical equipment). That’s the only energy efficient cryptocurrency I have made some experiences with so far – as I said I’m still in a learning and exploring mode ;)
 
aisthi said:
Hi everyone, I wanted to ask how many of you invest in energy efficient cryptocurrencies. What are your experiences with it? A friend of mine has been investing since last year and has already made decent profits... but most of them being energy expensive cryptocurrencies, such as Bitcoin. I am aware that certain cryptocurrencies, for example BTC, require a lot of energy and are of course not really good for the environment (ok, in general, they won't change a lot if nobody uses them, but still there is this "negative" twist in it). But to me, environment is actually an important issue, and I was looking for alternatives. Are there actually energy efficient cryptocurrencies at all? I assume that there should already be a lot of options and in the future energy efficient coins might have a lot of potential... Thank you already for your recommendations/answers!
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Pro tip, don't believe everything you read in the papers. Mining is competitive, right? Inefficiencies get driven out, whoever can do it cheaper gets the most reward and whoever can't do it cheaply enough goes out of business. So who wins? No-one that has electricity costs, renewables and recovery of otherwise wasted energy are the only long term viable options. Play it out further and electricity production becomes the primary market, selling it to the grid when there's high demand and only powering up miners to monetise surplus.
 
Hi guys, thanks a lot for your answers!

xkcd, thanks for pointing that out. I didn't know that 36% of the block reward goes to the miners and 54% goes to the masternodes and 10% goes to fund the network in the DAO. Interesting! And yes, with Bitcoin it's clear that it's in a different league... so I'm not a big fan either, but unfortunately a lot - or everything!? - depends on BTC...

adventurehead, then we have a lot in common! :) I also pay a lot of attention to the environment in everyday life and also try to take the plane as little as possible... so if it goes on vacation, then mostly by car or train... Flying can not be avoided completely, but if, then I stay longer where I fly to... a weekend in another city, that would never come into question with me! Especially because I find that much too stressful ... :)

I would be interested in which cryptocurrencies you generally invest... How long have you been there, for example, with Idena? I also find the concept interesting... especially this democratic approach.

Do you also look at stocks (if you own any)... I've been looking for a suitable, environmentally friendly ETF for a while now, but somehow don't really have anything on my radar.

stan.distortion, sure, you should always question the sources and the intention of the author anyway... nothing in the world is objective, I always say… :D But therefore, I always like to get opinions and experiences from friends, colleagues or just in forums like here.

Unfortunately, it is common in our world that those who make the cheapest offer, are also the preferred ones. But that doesn't always mean good things... For example, because of the Ukraine war, people are already expecting huge grain crop failures. And this will hit the poorest of the poor in Africa... but it is not mentioned that the EU sells chickens cheaper than many a farmer in an African country. And of course, the people then buy the cheaper meat (which is absolutely understandable) ... and the local farmers must fear for their existence... so unfortunately cheap means in the rarest cases also good.
 
Your are absolutely right with that, it’s in fact another thing I also take care of (if possible) – to buy regional and not the cheapest stuff. But actually all the troubles lie within the system we built. I don’t know if you may have come across this, but with some of these new, democratic, proof-of-personhood cryptocurrencies goes a concept that imagines a basic income – that’s also an interesting idea. We’d probably have far to go for that but I think it could be in reach with cryptocurrencies.

As already mentioned I just started with it, did a few validations, tried out a few things and had a look into the community (what’s another thing that is quite big). It is quite easy to get into it and just try it out before you really invest money. I have also started investing in some other coins but with this I feel more like I can be part of it – you know what I mean?
 
aisthi said:
Hi everyone, I wanted to ask how many of you invest in energy efficient cryptocurrencies. What are your experiences with it? A friend of mine has been investing since last year and has already made decent profits... but most of them being energy expensive cryptocurrencies, such as Bitcoin. I am aware that certain cryptocurrencies, for example BTC, require a lot of energy and are of course not really good for the environment (ok, in general, they won't change a lot if nobody uses them, but still there is this "negative" twist in it). But to me, environment is actually an important issue, and I was looking for alternatives. Are there actually energy efficient cryptocurrencies at all? I assume that there should already be a lot of options and in the future energy efficient coins might have a lot of potential... Thank you already for your recommendations/answers!
Click to expand...

There is plenty of energy on earth. The question is not whether you spend energy , but WHEN you spend it. If you spend an energy that you are unable to store, its ok and you are energy efficient. In that sense, you have to search each Proof of Work (PoW) crypto and discover what exactly their mining farms are doing. The PoW cryptos that have governance (like Dash), they may have the hope that in future they will decide to regulate their mining farms in terms of clean energy consumption.

The "Proof of Stake" (PoS) cryptos are energy efficient but they have the disadvantage of initialized majorities and centralization, because they are Timocracies and not Democracies. One of the best energy efficient cryptos is algogrand. ( Question: Migration substrate vs Migration vers Token sur Algorand? - Nodes / Duniter - Duniter Forum ). It uses PPoS (read about PPoS and how it differs from other PoS).

Finnaly, consuming energy is not necessarily bad, especialy if you use a Proof of usefull Work (PouW) system that Dash is about to investigate.
 
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I have been thinking about investing in cryptocurrency for a long time.
Now I am 24 years old, I would like to have a good passive income by the age of 30.
I just started to study the topic of cryptocurrency, and I even found a proven payment system etc mining where you can track everything.
And what do you think, is it worth investing in cryptocurrency now?
Now the crisis is coming on my heels and I'm afraid of losing money.
Do you think there is a big chance that cryptocurrency will die?
 
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adventurehead, yes, I also find this concept quite exciting. I think it's good that there's such a wide selection now. You can always find something suitable for you. Do you also have different investments?

I just have to think about how much I invest in what... so how much in total and how I divide it... do you have any recommendations in this regard?

vazaki3, thanks for your explanations and useful info. Thanks for the hint too. i'll take a look. What is your favorite?

JoshQuick, may I ask what you found there? I also wonder if NOW is the right time to invest...you can only ever know in hindsight hahah but the world is just generally facing another crisis...and in times of crisis it would even be good to invest as far as I know.... only that's when you dare least. :D
 
@vazaki3: Oh that’s a great explanation and deeper look into the mechanisms and concepts of cryptocurrencies – I haven’t came across PPoS or PouW so far. There is still so much to learn for me…

@JoshQuick: I don’t think that cryptocurrencies will die any soon – in contrast there are so many new ideas developing, I even feel like this can be the future of payment and investment. For sure there are some ups and downs, as with every kind of investment, but I think over all cryptocurrencies are still worth investing.

@aisthi: Yes – when I started I had a certain amount of spare money I was able to invest and after some research I decided to split it into several different coins/investments (eg. I also wanted some classical things to balance the risk). I am tracking the changes to develop a feeling for it and to be able to change and exit quickly. That’s quite good for beginners (at least I’ve read this on a Blog and I did well so far :p).
 
adventurehead, oh, it's like a universe of its own... you can hardly know everything. There are always new things - and some of them are really good and have a lot of potential. You have to find out what might have a chance in the future... you have to know a little bit about it, and a little bit of luck is also part of it.

I also can't imagine that cryptocurrencies will disappear soon... they are becoming more and more popular and in Salvador, for example, it is already legal coin and you can pay with it! I'm curious to see how the state develops economically in the next few years.

I think it's good that you split your investments. It's always good to be diversified. I'm also glad to hear that you're doing well so far!
 
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