According to The Conversation, the fall in the price of cryptocurrencies has created an “embroidery of hope” about slowing down climate change, which is “good news” for the world.
In addition to being energy-intensive for their “mining” (a word for producing digital currency) and wasting natural resources, cryptocurrencies are also “highly volatile.”
Digital currencies such as bitcoin were to be used as digital cash. Instead, these currencies became popular as “speculative investments.”
The prices of major digital currencies, such as Bitcoin and Atrium, have fallen more than 55 percent in six months, leading some to believe that “legislation” is needed to curb the “turmoil” in these fluctuations.
The slump in the digital currency market is likely due to several factors, and is unlikely to be due to Kevin TerraUSD, which is supposed to be pegged to the US dollar.
Explaining the reason for investing in digital currencies, the site explains: “For years, interest rates have been close to zero, making bank and treasury bonds seem like futile investments, while digital currencies and digital tokens are irreplaceable. (NFT) looks attractive. “
It is worth noting that the US Federal Reserve and the Bank of England recently raised interest rates to their highest level since 2000. The shutdown to fight the Corona and Russia’s invasion of Ukraine also affected markets.
Bitcoin is reportedly not dependent on governments or banks and the decisions they make, but investors are generally not. They want to keep “risks” out of their wallets and get rid of digital currencies.
Regarding the link between currency generation operations and climate change, the site states that “the most polluting digital currencies during mining operations, such as bitcoin, atrium and dojoquin, consume about 300 TWh (TW / h) of electricity, which is mainly fueled.” Every year by fossil fuels.
The annual “carbon footprint” of bitcoin (total emissions) is about 114 million tons, which is roughly equivalent to launching 380,000 space rockets.
Mining is seen as a way to “waste energy”, a process that uses specialized computers to generate digital currencies, and most mining devices in the world consume electricity generated by coal-fired power plants.
The higher the price of digital currency, the more mining companies are willing to pay for electricity, because it is more profitable than costs.
As bitcoin prices fall, “there is less financial incentive to waste energy extraction bitcoins” and costs outweigh profits. In theory, this is good for the weather, because it reduces electricity consumption and thus reduces greenhouse gas emissions.
Several governments appear to be “watching digital currencies as tools for economic growth,” but falling prices indicate that bitcoin is “useless as a necessary tool for trade” and its value is “unreliable.”
According to the site, in order to maintain the global climate and economic stability, “strict measures” must be taken to deal with digital currencies, and this will be considered a “blessing for all”.
Source: Lebanon Debate
