This study explores the connection between green cryptocurrency and volatility, a significant feature of cryptocurrencies. The frequent and large price swings that cryptocurrencies suffer are referred to as volatility, and they provide difficulties for traders, investors, and wider adoption. This research aims to ascertain whether environmentally aware practices might contribute to a more stable and predictable cryptocurrency market by investigating the relationship between green crypto initiatives and volatility. In general, this research advances knowledge of green crypto and its possible effects on market volatility. Furthermore, there are several variables that affect the relationship between green cryptocurrency and volatility, including investor behavior, regulatory changes, and market mood.
TopIntroduction
The rise in acceptance and popularity of cryptocurrencies in recent years has completely changed the financial landscape and opened up new possibilities for decentralized digital trade (Covel, 2006). Due to their potential for safe and borderless transactions, increased anonymity, and the promise of financial inclusion, cryptocurrencies like Bitcoin and Ethereum have received a lot of interest. But the environment has paid a heavy price for this exponential growth (Schar & Berentsen, 2020).
Traditional cryptocurrencies' negative effects on the environment, especially Bitcoin, have prompted questions about their viability. A rising number of people are realizing that the explosive growth of cryptocurrencies is intrinsically tied to major ecological effects due to the energy-intensive nature of the underlying blockchain technology and the carbon emissions produced by mining operations (K. A. Kumar & Murty, 2019). As a result, it has become increasingly important to create and advertise eco-friendly alternatives in the world of digital currency. In this study paper, the idea of “Green Crypto” is examined as a viable paradigm for cryptocurrencies in the future (Ng & Lam, 2006). Green crypto refers to the creation and use of digital currencies that prioritize environmental sustainability, carbon neutrality, and energy efficiency. Green Crypto intends to reduce the ecological impact and carbon footprint typically associated with cryptocurrencies by including renewable energy sources, cutting-edge consensus techniques, and resource-efficient protocols (Özen et al., 2022).
This research paper has two main goals: first, it wants to give readers a thorough understanding of the environmental risks that traditional cryptocurrencies pose, and second, it wants to look at the new technologies, plans, and projects that are helping to create Green Crypto. We aim to shed light on the potential of Green Crypto to address the important environmental issues related to the cryptocurrency business by reviewing existing research, case studies, and real-world applications. Investment in green cryptocurrencies, sometimes referred to as sustainable or eco-friendly cryptocurrencies, can be used for a variety of things, including addressing specific needs in the crypto business and more general sustainability initiatives. Following are some arguments in favour of green cryptocurrency investment:
Environmental Issues: Traditional cryptocurrencies such as Bitcoin and Ethereum rely on energy-intensive mining techniques that are frequently powered by fossil fuels (Bhatnagar, Özen, et al., 2022; Bhatnagar, Taneja, et al., 2022). This results in increased carbon emissions and harm to the environment. Green crypto seeks to address these problems by relying on more environmentally friendly and durable solutions.Carbon Neutrality: As opposed to Bitcoin's proof-of-work (PoW) consensus process, green cryptocurrencies often use consensus mechanisms that consume substantially less energy. Proof-of-stake (PoS) and other energy-efficient algorithms are used in some green cryptocurrency initiatives, which reduce carbon footprints and support carbon neutrality. Environmental, Social, and Governance (ESG) investing has become increasingly popular as investors look for opportunities that reflect their values and respond to sustainability issues. ESG-compliant green crypto projects give investors opportunities for making investments in ecologically favorable causes. Innovation and Technological Advancements: Purchasing green cryptocurrency helps to fund the creation of cutting-edge products and technology that have the potential to revolutionize the cryptocurrency market. Green projects frequently concentrate on enhancing scalability, transaction speeds, and energy efficiency, fostering innovations that are advantageous to the overall blockchain ecosystem.