Cryptocurrencies have changed the way we look at fiat currencies, and the way money gets transferred today. Additionally, these digital assets have proven to be a passive income (remember Ripple’s XRP was most profitable coin last year, so it changed many lives) for many due to the enormous profits they gained. Without no doubt, most of these cryptocurrencies have to be mined before they are attained.
When you hear of ‘Crypto-mining’, what comes to your mind will be high energy usage. Based on some factors including energy usage and how eco-friendly some might be, there is a big difference between Ripple, Bitcoin, and traditional technology Visa.
Ripple, Bitcoin, and Visa Energy Consumption Comparison
Not too long ago, a research was done by a team of cryptocurrency experts on how eco-friendly our money can be. The study centered on some cryptocurrencies and Visa. On electricity usage, lots of individuals plus the research concluded that the Ripple’s XRP token is eco-friendly, as it doesn’t make use of high energy compared to Bitcoin and Visa. It is important to know that the yearly energy consumption showcases that Bitcoin uses 26.05 TWh, and Visa uses 0.54 TWh.
However, XRP, which consumes little electricity makes uses of 0.000536112 TWh of electricity. For a better understanding on that, taking a look at the number of homes in the United States; the ranking remains that XRP has the capability to only power fifty houses, on the other hand, Bitcoin can power a little less than 3 million homes.
Additionally, according to the survey, it has been revealed that the total cost acquired in the energy used in (United States Dollars) per year marks a big difference between the three. XRP costs only 64,000 USD while Bitcoin costs 3 billion USD and Visa 64 million USD per year.
According to the research work, Bitcoin relies on the proof-of-work (PoW), which means that a lot of computational efforts are required. Furthermore, PoW usually involves lots of servers trying to solve highly-complex math equations to produce new blocks in the blockchain system for the production of new tokens (which is the reward for mining).
PoW requires high energy usage with a higher transaction fee and its systems are particularly connected with a high level of energy usage, electricity, Carbon dioxide emissions, and transfer fees.
On the other hand, Ripple makes use of Proof-of stake (Pos), which doesn’t make use of that much energy, electricity, transfer fees and so on. It is necessary to add that BTC emits 144 lbs of CO2 per transaction, Visa emits 0.00794 lbs of CO2 per transaction, whereas Ripple only emits 0.0000138 lbs of CO2 per transaction, according to the research.
Finally, the study also affirmed that it is good to a run a server on Ripple’s protocol because it doesn’t have high transaction fees and the cost of electricity is meager as it doesn’t use a high amount of energy. Ripple has a great utility which makes it a better choice for investors today.
Visa uses much energy than XRP – don’t be marveled, despite the praises about Visa’s network. Ripple is cost-effective, not only that, it is eco-friendly and efficient.
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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.
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