Cryptocurrency is a hot and relatively new field that deserves our attention, but the current pace of climate change is making it more and more difficult for it to prosper.
Firstly, cryptocurrency is so dependent on the internet, which can be disrupted by natural disasters. This then impedes online transactions in crypto gaming. In terms of electricity, many areas in Northern Europe will have difficulty sustaining their power grids due to higher energy consumption brought about by warmer climates as well as increased demand when air conditioners are running in overdrive due to hotter temperatures year-round. Lastly, cryptocurrencies are largely mined using powerful computer equipment, which will require even more electricity with a hotter climate.
1. Bitcoin is a cryptocurrency that relies on a blockchain in order to function and have value.
Blockchains are decentralized ledgers which store information and power transactions. In order for a transaction to be completed, all parties involved would need to reach consensus on the transaction, which requires reaching agreement among all parties participating in the transaction. In other words, most systems are less vulnerable to resolution if one party does not hold up their end of the bargain. Since Bitcoin’s blockchain inherently doesn’t require any third party (and can even be limited), it is more susceptible to attacks from hackers or countries that may wish to shut it down .
2. Bitcoin’s price dropped from more than $20,000 to $5,000 this winter.
The true value of Bitcoin is not determined by its value in dollars or investment that people have poured into it. People invest in Bitcoin because they believe the price will continue to increase over time. The problem is that no one has been better at predicting the future value of Bitcoin than those who create and control its supply. For example, since being released in January 2009, no one has managed to increase the total number of coins mined with any degree of accuracy. Our site list is here.
3. The Securities and Exchange Commission (SEC) sent ten subpoenas to cryptocurrency exchanges in early January 2019.
The SEC has been concerned that the exchanges are not doing their part to prevent fraudulent trading and money laundering. Sadly, the SEC’s request comes at a time when cryptocurrency exchanges are vulnerable to the recent drop in Bitcoin’s price and have not had time to make some much-needed changes.
4. The conflict between hardliners and moderates has reached a boiling point in recent days, with both sides duking it out on Reddit over who should continue to control the message of cryptocurrency.
Hardliners who advocate for Bitcoin’s core values as a decentralized currency for manaul outreach don’t agree with so-called moderates who want to see more involvement from governments and financial institutions in order for Bitcoin to continue growing at its current rate of adoption.
Hardliners believe that Bitcoin needs to maintain its core values and continue down the path of being a decentralized currency. On the other side of things are the moderates, who focus more on finding ways to develop businesses around Bitcoin while at the same time working with regulators and financial institutions. This conflict came to a head in January 2019 when one dispute between the two parties on Reddit resulted in moderators removing both hardliners and moderates from their forums.
5. As environmental experts predict, annual temperatures will rise by 2 degrees Celsius by 2040 and increase by 3 degrees Celsius by 2090.
Even as some governments are urging people to reduce their carbon footprints, they are doing little to hold back the rising temperatures that may eventually lead to a range of severe weather events. Without the ability to keep up with these changes, the future remains uncertain for Bitcoin and other cryptocurrencies.
6. Some groups in Venezuela are mining bitcoin illegally, since government currency is so devalued.
Venezuela is on the brink of hyperinflation, which is making it nearly impossible for citizens there to buy much more than a cup of coffee. However, Venezuelans can still use cryptocurrency to get around these problems and access low-cost international remittances by sending digital payments through bitcoin .
7. Ethereum holding its value does not make the situation any less concerning, especially considering the ERC20 token is the most prominent type of cryptocurrency in use today.
The value of Ethereum was made apparent when one analyst (Elliot Thomas) noted that if Ethereum’s price remained static over the course of a year, it would require more electricity than all of Ireland used in 2014.
8. The US electric grid no longer consumes more power each day since 2008, but natural gas is still problematic due to its volatility.
As electricity usage continues to drop, the US electric grid has plenty of potential for future growth in areas that are investing heavily in solar and wind energy. However, the US electric grid is still dependent on natural gas. This transition, while positive for the environment, increases the risk of price volatility in natural gas as fossil fuel companies struggle to find new ways to meet demand.
9. The cost of mining Bitcoin
It has dropped in recent years because it’s become so competitive with energy consumption, but it could change again following an announcement this week that Saudi Arabia has decided not to accept cryptocurrency for crypto igaming as payment and will begin making them illegal at some point in the next nine months.
The Saudi Arabian Monetary Authority (SAMA) has issued a stern warning against cryptocurrencies and all forms of initial coin offerings (ICOs).