The sustainability of cryptocurrencies has been a major topic of discussion for the past two weeks, as many have pointed the environmental concerns of crypto mining. Tron Foundation founder Justin Sun has also lent his voice in the debate. He was speaking to CNBC at the ‘Squawk on the Street’ program, discussing the volatility and his outlook for crypto assets.
The crypto industry needs to deal with mining issues
Sun agreed that Tesla’s chief Elon Musk has influenced the recent issues surrounding cryptocurrencies. He admitted that Musk’s tweets and the decision to stop Bitcoin acceptance by Tesla all contributed to the recent backlash Bitcoin and cryptocurrencies are receiving.
However, he pointed out that Musk’s concerns are genuine and the crypto industry needs to find out ways of dealing with the issues raised. He stated that the industry needs to find ways to make Bitcoin (BTC/USD) energy-friendly crypto.
Using proof-of-stake to solve crypto’s energy issues
Proof-of-stake (POS) technology has been described as the alternative option for the crypto industry that can eliminate the use of fossil fuel for crypto mining. Sun pointed out that the Tron Foundation uses POS technology, which can significantly lower the energy consumption rate by 99.9% in the industry. He stated,
With proof-of-stake, you don’t need mining machines to produce blocks.
Crypto has moved from early adoption to mainstream adoption
When asked about his opinion about the future of cryptocurrencies, Trun stated that the industry will see increased institutional and consumer interest, despite the present challenges. He believes the crypto industry is still in its infantry stage. Sun added that non-fungible token (NFT) is an easy way to understand how blockchain works.
The NFT industry is also in its early stage and it’s expected to grow at a speedy rate. “I believe this year we will start to see the first 1 million collectors of NFT,” he said, pointing out that the number will grow to about 100 million in the next 5 to 10 years.