Gone are the days when investors would back companies because they were not polluting as much as their competitors or that paid a lot of money to offset their carbon footprint; now, these same investors are actively seeking to invest in creating a more sustainable society by supporting companies or projects that provide or assist environmentally friendly products and practices.
These green – or eco – investors encourage innovative technology that can support the transition from carbon-hungry practices to more green and sustainable alternatives. These investments, although for a worthy cause, can still generate significant profits for their shareholders.
Where to invest?
Green investors have the choice of investing in several sectors. These include the following:
- Renewable Energy – Wind, solar, hydro, tidal current, and wave technology, as well as the storage of large amounts of energy in fuel cells or hydroelectric pump storage schemes. This sector also includes companies that supply biological raw materials used to create energy or fuel
- Green Buildings and Efficiency – The manufacture of green building materials or the supply of energy-efficient products or services in the building industry, such as efficient insulation, low-energy lighting, and energy-efficient glass.
- Eco-friendly Living – Companies that provide natural and sustainable alternatives to harmful substances such as pesticides and pharmaceuticals
- Green Transportation – Think electric cars and the current shift towards replacing the combustion engine with an electric alternative
- Green Crypto Initiatives – Blockchain technology has the potential to impact and improve many areas of environmentalism, with more and more initiatives being born.
How is green investment relevant to the crypto market?
Everyone knows by now that it takes a lot of energy to mine Bitcoin. The power needed to run the machines that mine the coins is considerable, and it was recently estimated that it takes around 2,264 kWh worth of electricity to mine a single Bitcoin. This is enough power to boil 1,500 kettles! Environmentalists and influential people are beginning to point the finger at the cryptocurrency industry and forcing the players involved to think about reducing their impact on the environment by switching to less energy-intensive validation systems or exploring renewable energy-based mining.
A good example of this is Ethereum, which is transitioning from PoW (Proof of Work – a blockchain consensus mechanism that involves solving computationally-intensive puzzles to validate transactions and create new blocks) to the more energy-efficient PoS model (Proof of Stake – where validators lock up some of their Ether as a stake in the ecosystem and bet on the blocks they feel will be added to the chain next. When the block is added, the validator receives a block reward in proportion to their stake).
Environmentally-friendly cryptocurrencies
Through the thousands of crypto projects that are around, there are more and more energy-efficient cryptocurrencies that align more with a green investor’s values. The difficult part is finding them, doing some research and assessing their validity and level of “green-washing”, because unfortunately, that is a common practice in marketing.
After finding the projects that best resonate with your principles, and you ensure that it’s a project you trust, you can take steps to support the green future of cryptocurrencies through investing.
Become a Green Investor today
It’s easy to become a green investor by investing in crypto, and there are several online trading platforms that can help you buy and sell your chosen sustainable crypto assets.
IXFI is an all-in-one crypto trading platform that’s part of a larger friendly crypto ecosystem. Fast transfers, top-notch security and high performance are just some of the tools that will take your trading of green crypto assets to a whole new level. Join Your Friendly Crypto Exchange for a better financial future.
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Investment involves risk; any ideas or strategies discussed herein should therefore not be undertaken by any individual without prior consultation with a financial professional for the purpose of assessing whether the ideas or strategies that are discussed are suitable to you based on your own personal financial and fiscal objectives, needs and risk tolerance. IXFI expressly disclaims any liability or loss incurred by any person who acts on the information, ideas or strategies discussed herein.
