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The scoop: El Salvador announced that Bitcoin is now legal tender. Citizens can pay taxes with it and stuff.
Why it matters: El Salvador is the first country to recognize a cryptocurrency as a legal form of currency. This marks a major shift toward government's view of decentralized financial systems, and a potential shift away from central banks.
The energy problem: We all know Bitcoin has an energy problem. To combat that, El Salvador plans to use geothermal energy from its volcanoes to produce cheap, clean energy for bitcoin mining. Let's see if they can build sophisticated infrastructure to match pent-up demand.
Bottom line: In the rush to make bets on the future of finance, governments around the world are responding with crypto plans for citizens.
Question: Will this push for legal forms of cryptocurrency help or hurt its climate impact in the long-run?
Dig deeper → 2 min
The scoop: Last week, Ripple’s CEO made an ambitious commitment to go carbon net-zero by 2030 in collaboration with conservation Rocky Mountain Institute and REBA, and pressured other crypto companies to do the same.
- Unlike Bitcoin, Ripple (XRP) was built with a finite supply (100 billion) at its inception, making it easier to control mining activities and mitigate its environmental footprint.
- Compared to Bitcoin’s 4.51 billion lightbulb hours needed to mine it, the XRP Ledger uses just 79,000.
- A lot needs to happen to make do on that claim, but Ripple is the first crypto looking to go carbon net-zero, and they have a plan (see below).
Bottom line: I don’t know if Ripple, Ethereum, and Bitcoin will one day replace Euros, Dollars and Yuan. With that said, why not bet a dollar on the possibility that they one day could?
Dig deeper → 3 min.