Does a fall follow pride with crypto-currencies?
Does a fall follow pride with crypto-currencies?’
There is ever-more fevered speculation about when the crypto-craze is going to hit a wall.
Ethereum has risen 3,500% this year; Bitcoin is $8000, up more than 600% since January. Will they climb further? The bad news is that the power needs of miners have risen 43% just since October. The global drain on electricity networks of mining cryptos is now 28 terawatt-hours a year, whereas anything above 19 cents/KWH makes mining unprofitable. We’re in a sweet spot just now as the price of Bitcoin goes up and makes power relatively cheaper. But when the rate goes down as further coins are mined, that process will go into hard reverse, unless Bitcoin continues its relentless climb in value.
Citigroup estimates that, “even as bitcoin approaches $8,000, the price required for mining to be marginally profitable may reach a jaw-dropping $300,000 to $1.5 million by 2022”. Could Bitcoin balance its energy consumption with market value? $400,000 as a possibility has already been quoted.
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Hmmm very interesting indeed. Why when people do anaylsis of these are solar and or other alternative energy resources taken into account or used surely it will drastically improve that figure ??