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Cardano and Paligan set a record after Ilan Musk criticized Bitcoin


After Ilan Musk criticized Bitcoin for its high energy consumption, stock-based digital currencies began to set new records. The digital currency industry seems to have embraced environmentally friendly technologies in the wake of this criticism.

to the the report DeCrip A few days after Elon Musk turned the digital currency community’s attention to the environment, eco-friendly digital currencies are still breaking records.

The price of Paligan (formerly Matik) has increased by 30% in the last 24 hours and by 116% in the last week. The digital currency is valued at $ 1.75 billion at the time of writing and has a market capitalization of $ 10.1 billion. It should be noted that just a few hours ago, Paligan managed to set a price record of $ 1.82.

Cardano and Palgian set a record after Ilan Musk criticized Bitcoin
Weekly price chart of Paligan

Also, the price of Cardano (Ada), one of the most popular digital currencies based on stock proof, has increased by 15% in the last 24 hours and by 32% in the last week. Cardano set a new record today, May 16, at $ 2.39. Considering this price, Cardano’s market volume is now more than $ 75 billion.

Cardano and Palgian set a record after Ilan Musk criticized Bitcoin
Weekly Cardano Price Chart

Both digital currencies use the stock proof consensus algorithm to validate transactions. Proof of stock has much lower energy consumption than bitcoin and its consensus algorithm.

In proof-of-work algorithms, miners compete to solve complex mathematical equations. As these equations become more complex over time, miners are forced to use more powerful devices and, accordingly, their power consumption increases. In return, they receive the newly extracted coins as a reward.

In contrast, there is a stock proof algorithm that selects credentials based on the amount of digital currency they have stuck.

Data from the Digiconomist site shows that the electricity needed to extract bitcoins is equal to the electricity used throughout the Netherlands.

Of course, proponents of the proof-of-work algorithm believe that even this amount of power and energy consumption is worthwhile in networks like Bitcoin; Because it ensures the security of these decentralized networks and is essential for access to uncensored technologies.

In addition, they believe that this issue is not so complicated. According to them, bitcoin mining can lead to the beneficial use of wasted fossil fuels. In addition, a large part of the industry relies on renewable energy. For example, Chinese miners are collecting and using excess hydropower in the Sichuan region most of the year.

However, it seems that Elon Musk, who was once known as the hero of Bitcoin, has been more cautious in his support of this digital currency. The text of his tweet in which he mentioned the high power consumption of Bitcoin is as follows:

We are concerned about the growing use of fossil fuels to extract bitcoins and conduct transactions; Especially coal, which has the highest production (greenhouse gases). The idea of ​​digital currencies is extraordinary in many ways and has a bright future; But this idea should not be implemented at the cost of serious damage to our environment. Tesla does not intend to sell its bitcoins and will use them in its transactions as soon as bitcoin mining moves to more sustainable energies. We are also looking for digital currencies that consume less than 1 bitcoin.

Therefore, the CEO of Tesla and SpaceX has explicitly stated that he will not sell any of the billions of dollars of bitcoins that Tesla bought in January and will not use them in transactions; Unless “bitcoin mining is moving towards more sustainable energies.”

And finally, the last sentence of the Musk, which probably reduced the price of bitcoin by $ 10,000 and gave a lot of market volume to stock-based currencies: “We are also looking for digital currencies that consume energy from 1. bitcoins. “It should be less.”

In response to this tweet, the official account of the “Cardano Foundation” addressed Elon Musk and wrote:

So elon [email protected]How about asking members of your community to negotiate with our community?

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