How China’s crypto crackdown could lead to a cleaner bitcoin industry

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Hi readers,

When I was working on the latest episode of Tech in Asia Explains, which explores non-fungible tokens (NFTs), I spent a fair bit of time reading up on the environmental impact of blockchain. A single Ethereum transaction has a footprint of about 35 kilowatt-hour – according to my calculations, that’s how much power the average household in Singapore consumes in about three days, which is pretty terrifying to think about.

This not-so-green reputation extends to bitcoin as well, which uses up more energy annually than the entire country of Argentina. This has led to some soul-searching in the crypto realm around the sustainability of bitcoin mining, and the tides are certainly shifting. Several cryptocurrency firms are taking steps to reduce their carbon footprint, and China’s clampdown on bitcoin mining may have helped give the industry the eco-friendly boost it needs.

Today we look at,

• How China’s cryptocurrency crackdown could be a boon for greener bitcoin mining
• An edtech startup with programs that require just five minutes a day
• Other newsy highlights such as Paytm’s new partnership and Vendatu’s potential entry into the unicorn club

PREMIUM SUMMARY

How crypto mining could give green energy a boost

The carbon footprint produced by cryptocurrency mining has long been a cause for concern, but China’s crackdown on bitcoin mining activities within its borders has led to bitcoin miners seeking out greener pastures – and in some cases, greener energy sources.

• Coal ain’t cool: China has been a central hub for the bitcoin mining network, and miners in the country were responsible for about 70% of global bitcoin production, according to data from the Cambridge Centre for Alternative Finance. Their primary source of power for mining was coal, which is generally seen as a “dirty” fuel.
• Going elsewhere: With the crackdown, miners have been forced to shift their bases to geographies with more stable or permissive regulatory regimes. Many of these countries are signatories in the Paris Agreement and are looking to switch to environmentally friendly sources of energy.
• Crypto and clean energy: Bitcoin mining could be the answer to a major challenge that plagues renewable energy producers: inadequate demand. Plus, several bitcoin companies have pledged to actively work toward reducing their carbon footprints and adopt renewable sources of energy, although it is still early days yet.

Read more: Why China’s crypto exodus is a boon for green bitcoin mining

STARTUP SPOTLIGHT

Mind over matter

Ka-ching! Indonesia-based personal growth learning platform Mindtera announced that it has secured an undisclosed amount of capital from East Ventures in a seed round. Other backers in the round include Silicon Valley-based Hustle Fund, Traveloka’s Henry Hendrawan, and other angel investors.

• Founded earlier this year, Mindtera is an educational platform for social and physical intelligence and self-development. It provides science-backed programs that require just five minutes a day to complete.
• It’s got expertise behind it – its founders are Tita Ardiati, a certified life coach and senior statistician with over 14 years of experience in research, and Bayu Bhaskoro, a senior professional with more than 10 years of experience in multinational advertising firms.
• The fresh funding will go toward strengthening Mindtera’s product and technology team, developing more features, accelerating brand awareness, and building capacity to respond to market needs.

The Emerald Isle and the little red dot have a lot in common