NEW YORK - The cryptocurrency market is poised for significant expansion in the coming years, with industry analysts forecasting a compound annual growth rate (CAGR) of 11.1% from 2021 to 2028. This growth projection comes amid heightened scrutiny of the environmental impact of digital currencies, particularly Bitcoin, which is known for its substantial energy consumption.
Bitcoin, the world's leading cryptocurrency, has been under the environmental spotlight due to its energy-intensive mining process. Recent figures highlight that Bitcoin's energy usage has reached a staggering 154.9 billion kWh, surpassing the electricity consumption of numerous countries. This revelation has intensified the push for more sustainable practices within the sector.
In response to these concerns, innovations such as the Ethereum Merge Upgrade, implemented in September 2022, have been developed. This significant upgrade has successfully reduced Ethereum's energy usage by approximately 99.5%, showcasing a potential path forward for environmentally friendly cryptocurrency solutions.
Despite the environmental challenges and China's stringent measures to curb Bitcoin mining in an effort to achieve financial stability and carbon neutrality by 2060, the United States, China, Kazakhstan, Canada, and Russia continue to be prominent players in the global cryptocurrency mining landscape.
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