Wikimedia Closed Crypto Donations Over Energy Concerns

The Wikimedia Community closed a long-running vote on whether the encyclopedia should stop accepting cryptocurrency donations on Thursday. In the end, about 71% of the community voted against collecting crypto donations.

The main reason for the vote was the high power consumption of crypto networks, which has a negative environmental impact. The argument has been made against numerous proof-of-work tokens, including Bitcoin (BTC) and Ethereum (ETH). The Wikipedia Foundation will now consider the results of the vote.

The power consumption of cryptocurrency is a controversial topic. Mining was prohibited in big countries such as China and Kazakhstan last year due to concerns about energy use. Earlier this year, the European Union attempted a similar step.

Crypto Donation Only Takes Small Percentage of Wikimedia

Data showed during the discussion revealed that cryptocurrency donations accounted for a very modest part of Wikimedia’s overall revenue. During the previous financial year, the site collected approximately $130,000 in cryptocurrency donations, accounting for less than 0.1% of $150 million in income. The proposal’s supporters also mentioned cryptocurrency’s high volatility, which makes the medium unsuitable for financial transactions at times.

Nonetheless, the vote acknowledged that a sizable minority rejected the move. One common theme in the proposal’s critics’ arguments was that not all cryptos, particularly proof-of-stake models, were energy-intensive. Users also remarked that crypto was a crucial form of funding for people in oppressive nations and that fiat currencies had carbon footprint difficulties as well.

The proposal’s author, GorillaWarfare, is also a famous crypto critic. They also run the web3 Twitter page, which is doing very well.

How Crypto Affected The Environment?

The majority of recent discussion around cryptocurrency has focussed on the medium’s high energy usage and carbon footprint. While pro-crypto arguments point out that renewable energy accounts for more than half of all mining, detractors claim that miners are driven to employ the cheapest sources of energy. This would ultimately lead to a preference for low-cost, carbon-rich fuel.

Early evidence suggests that Bitcoin mining may require more energy than numerous small countries, despite the fact that a study is still being conducted on the subject. While it may be claimed that traditional finance consumes significantly more energy, it also does it on an exponentially greater scale, casting doubt on crypto’s high energy cost.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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