Renewable energies and cryptocurrencies: a new economic engine?

josevas217 (80)in PussFi 🐈 • last month

Hello friends of the PussFi community, I hope you're having a good day. Today I want to share a reflection on the energy transition and how leaving fossil fuels behind could impact the global economy. This isn’t only about protecting the environment, but also about how our energy production shapes markets, jobs, and even daily prices.

I’m not sure if it’s entirely possible, since the biggest economies consume the most energy, much of it from fossil fuels. Still, I think it’s worth reflecting on what could happen in the medium term.

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For more than a century, oil, coal, and gas have driven growth, powering factories, transportation, and cities—we can still see it today. But the issue with these resources is that they are not infinite, and their massive use has caused an environmental impact we can no longer ignore. From this reality comes the growing push toward cleaner energies such as solar, wind, and green hydrogen. The question is: what happens to the economy during this transition? And what role will crypto play in all of this?

Personally, I believe there are great opportunities, such as new jobs in technology, solar energy installation, battery development, and electric transportation. Some studies even suggest these could surpass today’s fossil fuel jobs. In the long run, clean energy also becomes cheaper, which could help stabilize markets—or at least, that is the expectation. World Energy Employment 2023 | Executive summary

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But there are also major challenges, we cannot deny that countries whose economies are largely based on the export of oil, coal, or gas will have to rethink their production models, because the income they currently earn could decrease considerably. A very specific case is my country, Venezuela, and also Colombia, which is heavily dependent on oil. This change will not be easy and will generate political and economic tensions.

Another key point is the initial cost of the transition, although profitable in the long term, installing renewable energy plants, transforming electricity grids and adapting transportation systems represents very large investments in the short term. And, of course, these expenses are usually added to the costs of all citizens through taxes, tariffs, or price adjustments.

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Something I find interesting is that not all countries are entering the transition on equal footing. While some nations have the technology, capital, and natural resources to produce clean energy, others are just taking their first steps and depend on international support. This can create new inequalities if not managed carefully.

And amidst all this, the world of cryptocurrencies also comes into play. We know that Bitcoin, for example, requires enormous amounts of energy to operate due to its mining system. Here, I wonder: How will it be affected in a scenario where the use of fossil fuels is increasingly limited? While many criticize Bitcoin's energy consumption, there are also initiatives seeking to migrate mining to renewable sources, which could even be an opportunity within this transition.

Let's imagine a future where much of crypto mining is done with solar or wind energy; not only would this be an environmental relief, it could also give a new boost to the crypto ecosystem in a global context that is increasingly demanding efficiency and sustainability.

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I personally believe that abandoning fossil fuels is not only an environmental decision, but also a profound change in the way the global economy works.

It will surely be a process full of complications, but also of opportunities that, if properly seized, could lead us toward a more sustainable future. And perhaps even the world of cryptocurrencies may find in this transition the chance to strengthen, adapt, and continue growing in a cleaner way. The key will lie in how we balance caring for the planet with people’s well-being, because there’s no point in moving forward if many are left behind, don’t you think?