There’s a case to be made that Dogecoin — a meme-based currency that relies on hype to increase its value — may be one of the most environmentally-friendly cryptocurrencies out there, according to a new report.
The report TRG Datacenters reviewed each of the major cryptocurrencies to see how many kilowatt-hours were consumed per transaction. This is based on the energy needed to produce the algorithms that produce the cryptocurrency.
- Overall, the report found Dogecoin to be second on the list, only behind the cryptocurrency XRP.
Some of the bigger ones — like Bitcoin and Ethereum — ranked high on the list. According to an email from TRG Datacenters, this is probably because of those coins “dominance and popularity within the market.”
Here’s the breakdown in kilowatt-hours consumed per transaction
- XRP — 0.0079
- Dogecoin — 0.12
- Cardano — 0.5479
- Litecoin — 18.522
- Bitcoin Cash — 18.957
- Ethereum — 62.56
- Bitcoin — 707
The process of creating a cryptocurrency is an exhaustive one. We’ve previously written an explainer on the process of mining it, which takes a lot of energy for computers to literally create the currency.
One miner told the Deseret News that he could be burning 1,900 watts at any given time. His electricity bill jumped to $230 per month because of the process.
Some miners spend time in China because energy is cheaper there, according to our explainer.
To put it all in perspective, Bitcoin uses more energy in a year than the entire country of Argentina, according to BBC News.