This year’s global heat wave has prompted the United States to consider declaring a climate emergency. For investors an eco-friendly cryptocurrency may be a safe option within the space if such an emergency is declared, The Motley Fool reports.
According to the news outlet, Cardano may be the best possible solution out there, as it’s a top-10 cryptocurrency by market capitalization. The cryptocurrency has prided itself on being eco-friendly and for being committed to sustainability, even before talks of a climate emergency being declared emerged.
As a result, the report adds, Cardano is “uniquely positioned to withstand a climate emergency.” It details that a new regulatory risk is emerging for the cryptocurrency industry, as Proof-of-Work cryptoassets consuming a lot of energy could soon be cracked down on.
As an example, it pointed to the European Central Bank revealing in a research article it might place a ban on Bitcoin mining as part of its crackdown on fossil fuel usage. Moreover, carbon taxes may be introduced on crypto transactions.
Last year, electric car maker Tesla stopped accepting Bitcoin payments over environmental reasons while maintaining most of BTC it bought after making a $1.5 billion investment in the flagship cryptocurrency. The company sold 75% of its BTC holdings earlier this year.
As the threat of a climate emergency being declared looms, some blockchains, like Algorand, are making being green a part of their marketing efforts. Cardano, however, has always been a green blockchain.
As CryptoGlobe reported, earlier this year a reforestation effort launched by Cardano reached its initial goal of planting one million trees “of different species native to areas across different parts of Madagascar, Indonesia, Nepal, Kenya, Senegal and Haiti.”
Cardano uses a Proof-of-Stake consensus algorithm that does not rely on energy-consuming equipment to create new coins and validate transactions. Instead, it relies on validators who stake their assets for the right to validate transactions and earn rewards.
Charles Hoskinson, the founder of Cardano, has also recently defended a sensible approach to crypto regulations.
As reported, data shown on Coinbase’s price pages shows Cardano’s ADA has a typical hold time of 153 days, meaning that ADA users on the platform hold onto their assets for that long before “selling it or sending it to another account or address.”
According to the cryptocurrency exchange, a long hold time “signals an accumulation trend,” while a short hold time “indicates increased movement of tokens.” Notably, Coinbase launched ADA staking back in March, with the current staking APY at the time being around 3.75%.
Cardano has recently become one of the top 10 holdings of whales n the BNB Chain (which was formerly known as the Binance Smart Chain) as investors are betting on the cryptocurrency ahead of its highly anticipated Vasil hard fork.
The Vasil hard fork is a major upgrade that will involve four Cardano Improvement Proposals (CIPs). Cardano creator Charles Hoskison has said the hard fork will deliver a “massive performance improvement.”
Featured image via Pixabay