Despite The Crypto Crash, Bitcoin Still Has a Bright Future

You might call it the cable that changed history. In the mid-19th century there were various attempts to lay cables across the Atlantic Ocean between Britain (Ireland) and the US.

It took several failures, numerous bankruptcies and over ten years before they got it right. But eventually they did and on July 27 1866 Queen Victoria broadcast a message to US President Johnson…

Money is a form of communication technology

Here’s what the first transatlantic cable said:

Osborne, July 27, 1866 

To the President of the United States, Washington 

The Queen congratulates the President on the successful completion of an undertaking which she hopes may serve as an additional bond of Union between the United States and England.

Johnson replied:

Executive Mansion Washington, July 30, 1866 

To Her Majesty the Queen of the United Kingdom of Great Britain and Ireland 

The President of the United States acknowledges with profound gratification the receipt of Her Majesty’s despatch and cordially reciprocates the hope that the cable which now unites the Eastern and Western hemispheres may serve to strengthen and perpetuate peace and amity between the governments of England and the Republic of the United States.

To send a message by ship could take ten days or more; now it was a matter of minutes. So somebody came up with the slogan “two weeks to two minutes”.

Transmission speeds improved rapidly; Morse code became words and it was soon possible to send multiple messages at once. By the end of the 19th century, Britain, France, Germany and the US were all linked by cable.

Personal, commercial and political relations were altered for all time.  Back then gold was money, of course, as were paper notes representing gold. You couldn’t send gold down the cable, however, nor paper. But you could send a promise.

And, within a fortnight of Queen Victoria’s message, that’s what two parties who trusted each other did. An exchange rate between the dollar and the pound was agreed and then published in the New York Times on 10 August. That is why, to this day, GBP/USD exchange rate is known as “cable”.

My purpose with this story is to illustrate a point: what is money, but a form of communication?

Look at a £20 note (if you still use them) and you will see the words “I promise to pay the bearer”.  Of course, promises disappear; gold doesn’t. The two are quite different forms of money: one is belief, the other is real.

Nevertheless, since the dawn of civilisation, we have been using promissory money. In Ancient Mesopotamia, people used mud tokens, representing sheep or barley, baked inside clay balls to log debts owed. They found it more efficient to draw pictures of the tokens in the mud for the same purpose, which is how the first system of writing developed.

In Ancient China, people recorded their debts on bits of leather; after the invention of printing they started using paper. Today the promises are recorded and exchanged between trusted third parties on computers.

Millions, probably billions, of promises are sent across the internet every second, transferring as quick as words, probably quicker. Not only does (promissory) money evolve with communication technology, it is often the spur, the impetus for communication technology to evolve.

Now bitcoin, with its blockchain, obviates the need for trusted third parties altogether – that is one of many reasons it is so special. Here is a money communication network backed instead by mathematical proof and the most powerful and resilient computer network ever known to man: the trusted third party is the blockchain.

Why would you not want to own a share of such a breakthrough technology? That, effectively, is what owning some bitcoin is – owning shares in a new monetary technology. And it’s not like they are doing any roll backs.

Money has evolved like language

I want to explore this idea of money as communication further.  It’s often said (by me at least) when considering politicians: look at what they do, not at what they say. What we do says more about us than what we say – what we do with our money says even more.

And what we do with our money communicates value, not just between buyer and seller, but across the economy. What is the price of this thing? What is its value? The answer is constantly being sent and received, digested and acted upon; and so does the economy constantly, incrementally evolve and develop with each new signal: the how, why and when, of what needs producing and where.

Money, then, is like a language, constantly evolving and changing. Nobody is really in charge – it wasn’t really planned, it has just constantly evolved. The architects of fiat money did not plan what we have today, they just used it to get out of a tight fiscal spot – extenuating circumstances at the time.

Similarly, nobody planned the language we speak today. Language is hard to plan and regulate, try as many have over the years – and still do. The English we speak today is a long way from the English of Chaucer, Shakespeare or Dickens. There are probably fewer words; certainly fewer tenses. Grammar is simpler. Yet English is far more widely spoken. The network has grown.

Mandarin may have three or four times more native speakers, but English is more widely spoken. There may well come a time when everybody in the world speaks it. It is the dominant linguistic network.

Meanwhile, other languages fade away. Cornish has gone. Few now speak Welsh or Gaelic. The local dialects of France and Italy are disappearing. Similarly, there are no doubt a plethora of African, Asian and American languages that are on the way out, if they haven’t already gone.

The question to ask is this: how scalable is the language? English has the potential to become the default language of the world. Despite having more native speakers, that’s unlikely to be the case with Mandarin. It’s certainly not going to happen to Gaelic, Neapolitan or Swahili.

How many different monies have there been in history? Shells, whale teeth, metals, paper, cigarettes, mackerel packs, cognac, Zimbabwe dollars, reichsmarks, denarii, farthings, shillings. Most have died. Only gold goes on.

But, as with transatlantic cables, you can’t send gold over the internet. Only golden promises between trusted parties.

Bitcoin is money for the internet

The US dollar is the global reserve currency. You can send that over the internet. But it’s hard for people who aren’t American to get US dollar bank accounts. Foreign exchange fees are expensive. Money transfers can take several days sometimes.

It’s a national currency that is used internationally. A country – and several do – could use it as their national currency, but they would be importing US monetary policy too, and so subjecting themselves to US political whims. Which is why most countries with their own political agenda issue their own currencies.

Thus, though “international”, as a national currency, the US dollar is limited by its national borders and its politics. The same goes for any national currency.

But language is not limited by national borders – or at least English isn’t. If only there was an apolitical, borderless currency for the borderless economy that is the internet, then that really would be scalable in a way that no national currency is. A network that has evolved organically, and is constantly growing.

You don’t need a bank account to start using bitcoin. You only need a phone with an internet connection. We are not far off that point when everyone who wants one has one. My argument is this: if money is language, then bitcoin is English. It has a potential to scale that no other currency has.

Just as an aside on how quickly money evolves – it’s worth remembering that as recently as the 19th century, the pound had greater global recognition than the dollar. In emulation of Jules Verne’s Phileas Fogg, who went Around The World in 80 Days, in 1889-1890 American journalist Nellie Bly went on a trip around the world in 72 days.

She took pounds, but she also brought some dollars, “as a test to see if American money was known outside of America”. She went east from New York, and did not see American money until Colombo, Sri Lanka, where $20 gold pieces were used as jewellery. They accepted her dollars – but only at a 60% discount.

It’s a bit of an ask – though possible – to get people to accept bitcoin in the physical world. But that is not what it is for. It is money for the internet.

Dominic Frisby author headshot

Source: Despite the crypto crash, bitcoin still has a bright future | MoneyWeek

More contents:

Crypto Prices Tumble Again After $300 Billion Sell-Off—How Low Can Bitcoin Go?

The price of bitcoin fell to a three-month low Saturday, continuing a slide that began Wednesday when the Federal Reserve sparked a broad sell-off by cautioning it may move more quickly than previously expected to reverse policy meant to bolster the economy during the pandemic, and experts forecast the latest crypto market drawback is likely to go on for weeks.

Bitcoin fell as much as 3% to below $41,000 by 1:45 p.m. ET, according to crypto data website CoinMarketCap, bringing its losses to more than 12% since the Fed warned it may move more aggressively to remove pandemic-era stimulus as it looks to combat high levels of inflation.

In a weekend email, analyst Yuya Hasegawa of cryptocurrency broker Bitbank cautioned he expects the world’s largest cryptocurrency could continue falling until the broader market, which has similarly struggled since the Fed’s Wednesday announcement, digests the likelihood of the Fed hiking interest rates as soon as March.

Hasegawa said bitcoin could fall as low as $40,000 in the near term, but that the government’s consumer price index report due out next Wednesday could bring a rebound if it shows inflation spiked more than expected, stoking the inflationary fears that have lifted bitcoin to new highs as recently as November.

On Thursday, crypto billionaire Mike Novogratz, the CEO of financial services firm Galaxy Digital, told CNBC the selloff could push bitcoin down another 8% from current prices to as low as $38,000—a level unseen since early August.

“I’m not nervous in the medium term but we’re going to have a lot of volatility in the next few weeks,” the staunch bitcoin bull said told CNBC, before pointing to booming institutional adoption as a bullish indicator for the nascent space.

Novogratz wasn’t alone among billionaire crypto investors cheering bitcoin on during its latest sell-off: “So. much. money. patiently waiting to [buy the dip] in bitcoin,” Barry Silbert, the founder and CEO of crypto firm Digital Currency Group, wrote on Twitter Saturday afternoon.

Bitcoin was far from alone in falling Saturday afternoon. Over the past 24 hours, ether, binance coin and sol were down 5%, 6% and 3%, respectively—pushing losses to roughly 20% apiece over the last week.”Bitcoin remains vulnerable to a breach of the $40,000 level, and it could get bad for ether if it breaks the $3,000 level,” Oanda Senior Market Analyst Ed Moya wrote in a Friday email. Ether prices clocked in at about $3,034 on Saturday.  “The long-term outlook is still bullish for both the top two cryptocurrencies, but the short-term is looking ugly.”

Despite bitcoin’s bouts of intense volatility, Goldman Sachs co-head of global foreign exchange Zach Pandl wrote in a note to clients this week that the cryptocurrency could top $100,000 in the next five years. Pandl said he expects bitcoin’s share of the crypto market, currently about 41%, “will most likely rise over time as a byproduct of broader adoption of digital assets” and that the cryptocurrency will increasingly compete with gold as a hedge against inflation.

$1.9 trillion. That’s the value of all the world’s cryptocurrencies Saturday afternoon, down more than $300 billion, or 14%, since Wednesday and more than $1 trillion below an all-time high of $3 trillion in November. Over the last five years, bitcoin prices have skyrocketed about 4,300%.

Follow me on Twitter. Send me a secure tip.

I’m a senior reporter at Forbes focusing on markets and finance. I graduated from the University of North Carolina at Chapel Hill, where I double-majored in business journalism and economics while working for UNC’s Kenan-Flagler Business School as a marketing and communications assistant. Before Forbes, I spent a summer reporting on the L.A. private sector for Los Angeles Business Journal and wrote about publicly traded North Carolina companies for NC Business News Wire. Reach out at jponciano@forbes.com. And follow me on Twitter @Jon_Ponciano

Source: ‘Looking Ugly’: Crypto Prices Tumble Again After $300 Billion Sell-Off—How Low Can Bitcoin Go?

.

More contents:

Visa And BlockFi Launch 2% Bitcoin Rewards Credit Card

In this photo illustration a Visa logo is seen on a mobile...

Cryptocurrency services company BlockFi launched its first-ever crypto rewards credit card, in conjunction with Visa, to approved clients in the United States on Tuesday. BlockFi’s plans for a credit card were initially disclosed in December 2020 when the exchange released a waiting list for US-based clients, which is now over 400,000 people. BlockFi CEO Zac Prince expects everyone on the waitlist to receive their card around the end of July.

The new offering provides clients with a simple way to acquire bitcoin without having to pay fees or navigate the sometimes complicated onboarding processes at exchanges. BlockFi stands to benefit from utilizing the card as a customer acquisition tool as well as from the fees it will receive from money spent on the card.

“The crypto industry has come a long way since the first Bitcoin payment transaction 11 years ago,” Flori Marquez, Co-Founder and SVP of Operations at BlockFi said. “Today, nearly everyone knows about the important role crypto plays in reshaping the financial space, and our new credit card is set to be another game-changer. This card will make it easier than ever for people to earn Bitcoin back while making day-to-day purchases.”

Holders of BlockFi’s Rewards Visa Card will be able to earn 1.5% back in bitcoin on every purchase, with the payout increasing to 2% on every dollar spent over $50,000 annually. As an incentive to new users, they will receive a 3.5% bitcoin rewards rate for the first 90 days or until they receive $100 worth of bitcoin. The card also offers other benefits such as rebates on trading fees and comes with no annual fee or foreign transaction fees.

These rewards are competitive when compared to other traditional cards. For example, Bank of America’s Customized Cash Rewards credit card offers 3% cash back in one spending category of the customer’s choosing, 2% back automatically on grocery purchases and 1% back on all other purchases.

However, depending on an individual’s spending habits they could be outshone by Gemini, the crypto exchange headed up by the Winklevoss twins, when it launches its crypto rewards credit card this summer in partnership with Mastercard. While BlockFi only offers rewards in bitcoin for now, Gemini will give clients 3% back on dining purchases in any cryptocurrency offered on the exchange on purchases without annual fees or exchange fees. However, the rewards drop to 2% on groceries and 1% for all other purchases.

The launch of the BlockFi crypto rewards credit card also marks a new offering in Visa’s expanding crypto business. The electronic payments company has partnered with several crypto firms to offer Visa debit cards and supported over $1 billion worth of volume through crypto-linked cards in the first half of 2020, but the partnership with BlockFi will bring its first crypto rewards credit card. In 2021, Visa appeared on Forbes’ Blockchain 50 list after applying for over 150 blockchain-related patents and announcing an integration with US-dollar pegged stablecoin USDC.

Card users will receive a 1.5% cashback on an accrual basis for every transaction made through the card, which will then be converted to bitcoin and placed into a BlockFi account in a regular monthly cycle.

“Crypto rewards programs are a compelling way to engage consumers in the crypto economy,” Terry Angelos, SVP and Global Head of Fintech at Visa said. “We’re excited to see programs like the BlockFi Rewards Visa Card, which offer rewards that are relevant to the growing community of digital currency adopters.”

The move by BlockFi comes after PayPal Holdings Inc in October said it would allow customers to hold bitcoin and other virtual coins in its online wallet and shop using cryptocurrencies, a move which could help bitcoin and rival cryptocurrencies gain wider adoption as viable payment methods.

Bitcoin has surged about 160% this year, fueled by demand for riskier assets amid unprecedented fiscal and monetary stimulus, interest in assets perceived as resistant to inflation and expectations that cryptocurrencies will win mainstream acceptance.

Follow me on Twitter or LinkedIn. Check out my website.

 

Source: Visa And BlockFi Launch 2% Bitcoin Rewards Credit Card

.

Critics:

BlockFi is a New York City-based start-up cryptocurrency financial institution. It lends U.S. dollars against bitcoin and other cryptocurrency collateral, as well as accepting deposits of cryptocurrencies which pay interest to the depositor. BlockFi Co-Founder and CEO Zac Prince has a background both in consumer lending and start-ups.

In February 2018, BlockFi received a $1.55 million funding in a seed round from ConsenSys Ventures, SoFi and Kenetic Capital, among others. In July it secured another $50 million in funding from Michael Novogratz‘s Galaxy Digital Ventures

References

Bitcoin Adds Back $150 Billion As Visa, PayPal Rev Up Crypto Offerings And Institutions ‘Buy The Dip’

Novelty Coins Representing The Bitcoin Cryptocurrency : Illustration

After a stark plunge Thursday that wiped out $100 billion in market value, the world’s largest cryptocurrency is back near all-time highs Tuesday as corporations like Visa and PayPal join other institutional players in expanding their crypto offerings.

As of 4 p.m. EDT, the price of bitcoin has climbed 2% over the past 24 hours, pushing its market capitalization up to $1.1 trillion–about $40 billion shy from an all-time high on March 13 and pushing gains to roughly $144 billion since a sharp correction on Thursday, according to crypto-data website CoinMarketCap.

‘Analysts are pinning the resurgence to still-booming institutional adoption, including PayPal’s new cryptocurrency checkout service, which launched Tuesday and allows the company’s more than 375 million customers to shop using cryptocurrency at millions of online merchants (PayPal didn’t specify an exact figure, but says the program will expand in the coming months).

Qanda Senior Market Analyst Edward Moya calls the move “another massive cryptocurrency endorsement from Wall Street” and “further proof of mainstream acceptance” just one day after Visa said it will start settling transactions with cryptocurrency partners using a token built on the Ethereum blockchain, which underpins the world’s second-largest cryptocurrency, ether.

Moya notes that bitcoin, which is priced at about $59,080, could struggle to push past $60,000 again but says the recent developments “should be enough to keep the bullish trend going strong.”

Nigel Green, the CEO of $12 billion wealth advisory deVere Group, said in an email Tuesday that growing corporate investments from the likes of Tesla and billionaire Jack Dorsey’s Square are signs that institutions are employing the “buy the dip” mantra popularized by retail investors—meaning they’re loading up on bitcoin when prices plunge.

What To Watch For

Regulation. Though Wall Street is warming up to bitcoin, legendary hedge fund manager Ray Dalio warned last week that he thinks there’s a “good probability” bitcoin could be banned by the U.S. government, similar to how it banned gold nearly a century ago. The Securities and Exchange Commission has been slow to issue regulation for cryptocurrencies.

In an interview with Forbes, SEC Commissioner Hester Peirce said Gary Gensler, President Joe Biden’s nominee to head up the agency,  would likely be “sympathetic to the call for regulatory clarity.” When nations like South Korea started cracking down on cryptocurrency three years ago, prices crashed as much as 80% over the course of one year, though it’s unclear how such a development could affect markets today.

Key Background

Bitcoin prices have skyrocketed over the past year amid booming institutional adoption and inflation fears sparked by unprecedented government spending to combat the pandemic. Last week, billionaire Elon Musk tweeted that Tesla would start accepting bitcoin for vehicle purchases and retaining the cryptocurrency tendered, as opposed to converting it to U.S. dollars. Also this month, Fidelity Investments filed an application for its first bitcoin exchange-traded fund, and banking powerhouse Morgan Stanley said it would open up bitcoin exposure to its wealthy clients, though it’s limiting such funds to investors with “an aggressive risk tolerance.”

Surprising Fact

Bitcoin has surged nearly 800% over the past year. Its return of about 96% this year is more than any sector tracked by the S&P 500.

Further Reading

SEC Commissioner Explains Why A Delayed Bitcoin ETF Has Consequences (Forbes)

Bitcoin Plunge Erases $100 Billion In 24 Hours–Here’s How Long The ‘Bloodbath’ Could Last (Forbes)

Legendary Investor Warns Bitcoin Ban ‘Likely’ As Price Suddenly Soars Toward $60,000 (Forbes)

Follow me on Twitter. Send me a secure tip.

I’m a reporter at Forbes focusing on markets and finance. I graduated from the University of North Carolina at Chapel Hill, where I double-majored in business journalism and economics while working for UNC’s Kenan-Flagler Business School as a marketing and communications assistant. Before Forbes, I spent a summer reporting on the L.A. private sector for Los Angeles Business Journal and wrote about publicly traded North Carolina companies for NC Business News Wire. Reach out at jponciano@forbes.com

Source: Bitcoin Adds Back $150 Billion As Visa, PayPal Rev Up Crypto Offerings And Institutions ‘Buy The Dip’

.

.

Chamath Palihapitiya says he sees bitcoin going to $200K down the road, and what he discusses what he believes to be the future for Virgin Galactic. I really believe in the business, he says, it’s an incredible team. Subscribe to CNBC PRO for access to investor and analyst insights on bitcoin and more: https://cnb.cx/2BT2E7y
Bitcoin smashed through $40,000 to hit a new record high on Thursday helping to lift the total value of the entire cryptocurrency market above $1 trillion for the first time. The digital coin hit an all-time high of $40,367 at around 1:17 p.m. ET, just a few hours after blowing past the $39,000 level, according to data from Coin Metrics.
.
.

How to Pinpoint the Best Social Media Platform for Your Business

Stop chasing shiny new social media platforms, and be consistent on a few.

IKEA Says Ever Given’s Suez Canal Delay Should Only Have ‘Minor Impact on Availability’

The home-furnishings giant had 110 containers of products stuck on the recently freed cargo vessel and ships in its shadow.

That Time Ben Franklin Slept in the Same Bed With John Adams

As we get back to traveling, let’s be grateful it’s not 1776.

Nike Sues Brand That Used Human Blood to Create ‘Satan Shoes’

The sneakers are already out of stock on MSCHF’s website. 

Entrepreneur en Español

· 3 min read

3 Ways Elearning Is Disrupting the Education Industry

Digital education, driven by advanced technologies, represents a major opportunity for entrepreneurs and investors alike.

Ademola Alex Adekunbi

· 4 min read

E-commerce automation, how to improve online sales with the help of robots?

Following explosive growth as a result of the pandemic, e-commerce has had to incorporate new tools to meet the needs of shoppers, who are increasingly demanding of online services.

The Unwritten Rules of Naming Your Business

You may not know it, but your industry has unwritten rules when it comes to business names. Find out what yours might be so you can craft a name that resonates with your customers.

Brad Flowers

· 5 min read

How to Create an Effective Sales Funnel Using Instagram

Discover what you need to do to begin attracting more prospects and closing more deals with help from your Instagram account.

Kim Walsh Phillips

· 6 min read

5 Lessons I Learned as an Accidental Entrepreneur

You don’t have to start a business to learn from my journey.

Braden Kelley

· 4 min read

Some Of The Many Changes To Amazon’s Business Model In 2021

Amazon has been investing in its long-term growth prospects for the better part of two decades and 2021 will prove to be no different. Regardless of what and where Amazon invests in, there is a consistent theme: Amazon is building on its massive scale to exert its dominance or encroach in rival’s territory. Q4 2020 […]

Ankur Shah

· 6 min read

Apple failed to stop Swatch from using Steve Jobs’ phrase “One more thing”

According to Bloomberg, the watch company may have acted in bad faith, but there is no reason to believe that the phrase is unique to the late Jobs.

Entrepreneur en Español

· 2 min read

Seven “Signs And Symptoms” Of Organizational Trauma

Organizational trauma isn’t always caused by a single horrifying event. It can also be ongoing or cumulative (say, a global pandemic). However, the impact on employees and organizations is fairly predictable, says workplace trauma expert Diana Hendel. Here are some common threads she sees in every traumatized organization. Q4 2020 hedge fund letters, conferences and […]

Jacob Wolinsky

· 6 min read

Electricity Needed To Mine Bitcoin Is More Than Used By Entire Countries

It’s not just the value of bitcoin that has soared in the last year – so has the huge amount of energy it consumes.

The cryptocurrency’s value has dipped recently after passing a high of $50,000 but the energy used to create it has continued to soar during its epic rise, climbing to the equivalent to the annual carbon footprint of Argentina, according to Cambridge Bitcoin Electricity Consumption Index, a tool from researchers at Cambridge University that measures the currency’s energy use.

Recent interest from major Wall Street institutions like JPMorgan and Goldman Sachs probably culminated in the currency’s rise in value and an endorsement by Tesla’s Elon Musk helped drive its recent high as investors bet the cryptocurrency will become more widely embraced in the near future.

While the recent fall has dented Musk’s fortune, bitcoin also poses a threat to the company’s mission toward a “zero-emission future” and poses serious questions for governments and corporations looking to curb their own carbon footprints.

Bitcoin mining – the process in which a bitcoin is awarded to a computer that solves a complex series of algorithms – is a deeply energy-intensive process.

“Mining” bitcoin involves solving complex math problems in order to create new bitcoins. Miners are rewarded in bitcoin.

Earlier in bitcoin’s relatively short history – the currency was created in 2009 – one could mine bitcoin on an average computer. But the way bitcoin mining has been set up by its creator (or creators – no one really knows for sure who created it) is that there is a finite number of bitcoins that can be mined: 21m. The more bitcoin that is mined, the harder the algorithms that must be solved to get a bitcoin become.

Now that over 18.5m bitcoin have been mined, the average computer can no longer mine bitcoins. Instead, mining now requires special computer equipment that can handle the intense processing power needed to get bitcoin today. And, of course, these special computers need a lot of electricity to run.

The amount of electricity used to mine bitcoin “has historically been more than [electricity used by] entire countries, like Ireland”, said Benjamin Jones, a professor of economics at the University of New Mexico who has researched bitcoin’s environmental impact. “We’re talking about multiple terawatts, dozens of terawatts a year of electricity being used just for bitcoin … That’s a lot of electricity.”

Proponents of bitcoin say that mining is increasingly being done with electricity from renewable sources as that type of energy becomes cheaper, and the energy used is far lower than that of other, more wasteful, uses of power. The energy wasted by plugged-in but inactive home devices in the US alone could power bitcoin mining for 1.8 years, according to the Cambridge Bitcoin Electricity Consumption Index.

But environmentalists say that mining is still a cause for concern particularly because miners will go wherever electricity is cheapest and that may mean places that use coal. According to Cambridge, China has the most bitcoin mining of any country by far. While the country has been slowly moving toward renewable energy, about two-thirds of its electricity comes from coal.

Since there is no government body or organization that officially tracks where bitcoin is being mined and what type of electricity miners are using, there is no way of knowing whether miners are using electricity that is fueled by renewable energy or fossil fuels.

Mining rigs can move from place to place depending on where energy is cheapest, which makes mining particularly hard to track.

“The places where you mine [bitcoin] can be moved around and, in some cases, you don’t even know where they are,” said Camilo Mora, a professor of geography and environment at the University of Hawaii.

Cambridge’s Centre for Alternative Finances estimates that bitcoin’s annualised electricity consumption hovers just above 115 terawatt-hours (TWh) while Digiconomist’s closely tracked index puts it closer to 80 TWh.

A single transaction of bitcoin has the same carbon footprint as 680,000 Visa transactions or 51,210 hours of watching YouTube, according to the site.

A paper from 2018 from the Oak Ridge Institute in Ohio found that one dollar’s worth of bitcoin took 17 megajoules of energy, more than double the amount of energy it took to mine one dollar’s worth of copper, gold and platinum. Another study from the UK published last year said that computer power required to mine Bitcoin quadrupled in 2019 compared with the year before, and that mining has had an influence in prices in some power and utility markets.

Bitcoin’s advocates have made it clear that they believe any environmental costs that come with mining bitcoin are worth the broader impacts it could have on society.

“Bitcoin would not be able to fulfill its role as a secure, global value transfer and storage system without being costly to maintain,” reads a defense against bitcoin criticism from Ria Bhutoria, director of research at Fidelity Digital Assets.

“Computers and smartphones have much larger carbon footprints than typewriters and telegraphs. Sometimes a technology is so revolutionary and important for humanity that society accepts the tradeoffs,” wrote investor Tyler Winklevoss on Twitter.

Some have pointed out that there does not have to be a tradeoff between cryptocurrency and the environment. The creators of ethereum, considered the second most popular type of cryptocurrency after bitcoin, have promised to change the currency’s algorithm to make its mining more environmentally friendly.

Vitalik Buterin, the computer scientist who invited ethereum, told IEEE Spectrum that mining cryptocurrency can be “a huge waste of resources, even if you don’t believe that pollution and carbon dioxide are an issue”, Buterin said. “There are real consumers – real people – whose need for electricity is being displaced by this stuff.”

Currently, ethereum’s mining works similarly to bitcoin where the most powerful computers have an edge in getting the most bitcoin as computers compete to complete a transaction first. Ethereum’s developers are working on changing that system so that miners enter a pool and are randomly selected to complete the transaction and receive an ether in return. This method, called “proof-of-stake”, guarantees that less electricity will be used to mine the currency.

But with bitcoin still reigning as the top cryptocurrency and, with endorsements from established companies and investment banks, the currency’s environmental impact is only likely to grow.

When it comes to electricity, “the computer doesn’t care. The computer is just getting the electricity to run, but where its electricity comes from makes a huge difference [for the environment],” said Mora.

By:

Source: Electricity needed to mine bitcoin is more than used by ‘entire countries’ | Bitcoin | The Guardian

.

.

Firmware for Antminer Z9 MINI, Unlocked Frequencies (NO DEV FEE) | Blockmine3rz
blockmine3rz.com – Today
[…] | Add to watch list BUY NOW ! VIEW MORE ASIC MINERS CHECK RANKINGS KNOWLEDGE BASE What is Bitcoin mining? Bitcoin Mining is the process of adding transaction records to the public account of past transactions b […]
0
Bitmain Antminer L3+ Scrypt ASIC Works Excellent BJG2442 | Blockmine3rz
blockmine3rz.com – Today
[…] | Add to watch list BUY NOW ! VIEW MORE ASIC MINERS CHECK RANKINGS KNOWLEDGE BASE What is Bitcoin mining? Bitcoin Mining is the process of adding transaction records to the public account of past transactions b […]
0
Antminer S9 13.5 Th/s with PSU | Blockmine3rz
blockmine3rz.com – Today
[…] | Add to watch list BUY NOW ! VIEW MORE ASIC MINERS CHECK RANKINGS KNOWLEDGE BASE What is Bitcoin mining? Bitcoin Mining is the process of adding transaction records to the public account of past transactions b […]
0
Antminer S9 13.5 Th/s with PSU | Blockmine3rz
blockmine3rz.com – Today
[…] | Add to watch list BUY NOW ! VIEW MORE ASIC MINERS CHECK RANKINGS KNOWLEDGE BASE What is Bitcoin mining? Bitcoin Mining is the process of adding transaction records to the public account of past transactions b […]
0
Bitmain Antminer S9 Bitcoin Miner Case with one fan | Blockmine3rz
blockmine3rz.com – Today
[…] | Add to watch list BUY NOW ! VIEW MORE ASIC MINERS CHECK RANKINGS KNOWLEDGE BASE What is Bitcoin mining? Bitcoin Mining is the process of adding transaction records to the public account of past transactions b […]
0
15 The Graph (GRT) Crypto mining Contract, virtual crypto currency contract | Blockmine3rz
blockmine3rz.com – Today
[…] | Add to watch list BUY NOW ! VIEW MORE ASIC MINERS CHECK RANKINGS KNOWLEDGE BASE What is Bitcoin mining? Bitcoin Mining is the process of adding transaction records to the public account of past transactions b […]
0
1 Spartan Protocol (1) (SPARTA) CRYPTO MINING-CONTRACT Crypto Currency | Blockmine3rz
blockmine3rz.com – Today
[…] | Add to watch list BUY NOW ! VIEW MORE ASIC MINERS CHECK RANKINGS KNOWLEDGE BASE What is Bitcoin mining? Bitcoin Mining is the process of adding transaction records to the public account of past transactions b […]
0
10 CHILIZ (CHZ) – Crypto mining Contract, virtual crypto currency, Crypto | Blockmine3rz
blockmine3rz.com – Today
[…] | Add to watch list BUY NOW ! VIEW MORE ASIC MINERS CHECK RANKINGS KNOWLEDGE BASE What is Bitcoin mining? Bitcoin Mining is the process of adding transaction records to the public account of past transactions b […]
0
5000 Equal (EQL) Crypto Mining Contract – Crypto Currency – Crypto Monnaie | Blockmine3rz
blockmine3rz.com – Today
[…] | Add to watch list BUY NOW ! VIEW MORE ASIC MINERS CHECK RANKINGS KNOWLEDGE BASE What is Bitcoin mining? Bitcoin Mining is the process of adding transaction records to the public account of past transactions b […]
N/A
500 NEST Protocol (NEST) – Crypto mining Contract, crypto currency, crypto | Blockmine3rz
blockmine3rz.com – Today
[…] | Add to watch list BUY NOW ! VIEW MORE ASIC MINERS CHECK RANKINGS KNOWLEDGE BASE What is Bitcoin mining? Bitcoin Mining is the process of adding transaction records to the public account of past transactions b […]
0
0.5 WAVES (0.5) (WAVES) CRYPTO MINING-CONTRACT Crypto Currency | Blockmine3rz
blockmine3rz.com – Today
[…] | Add to watch list BUY NOW ! VIEW MORE ASIC MINERS CHECK RANKINGS KNOWLEDGE BASE What is Bitcoin mining? Bitcoin Mining is the process of adding transaction records to the public account of past transactions b […]
0
Bitcoin Mining bot | PHP | Bitcoin | Software Architecture | Python | JavaScript | Freelancer
[…] do i need a bitcoin wallet, bitcoin mining bot telegram review, how much money can i make bitcoin mining, bitcoin mining bot telegram legit 2019, free bitcoin mining bot on telegram, telegram bitcoin mining bo […]
0
100 FORTUBE (FOR) – Crypto mining Contract, virtual crypto currency, Crypto | Blockmine3rz
blockmine3rz.com – Today
[…] | Add to watch list BUY NOW ! VIEW MORE ASIC MINERS CHECK RANKINGS KNOWLEDGE BASE What is Bitcoin mining? Bitcoin Mining is the process of adding transaction records to the public account of past transactions b […]
0
SARLAR VR Lens Brush for Oculus Quest 2/ Quest/ Rift S & Valve Index & HTC Vi… | Blockmine3rz
blockmine3rz.com – Today
[…] now | Add to watch list BUY NOW ! VIEW MORE VR SETS CHECK RANKINGS KNOWLEDGE BASE What is Bitcoin mining? Bitcoin Mining is the process of adding transaction records to the public account of past transactions b […]
N/A
Links 14/3/2021: KDE Gear 21.04 Branches, Anger Over EPO Statement on EQE
techrights.org – Today
[…] [Old] Yellen sounds warning about ‘extremely inefficient’ bitcoin Mining bitcoin requires users to solve complex mathematical equations using high-powered computer setups […]
N/A
Antminer S9i 14.5TH/s w/ Bitmain Power Supply TESTED, works perfectly! | Blockmine3rz
blockmine3rz.com – Today
[…] | Add to watch list BUY NOW ! VIEW MORE ASIC MINERS CHECK RANKINGS KNOWLEDGE BASE What is Bitcoin mining? Bitcoin Mining is the process of adding transaction records to the public account of past transactions b […]
0
Controller board for Bitmain Antminer L3 L3+ D3 A3 X3 and 4 Bitmain 18 pin cable | Blockmine3rz
blockmine3rz.com – Today
[…] | Add to watch list BUY NOW ! VIEW MORE ASIC MINERS CHECK RANKINGS KNOWLEDGE BASE What is Bitcoin mining? Bitcoin Mining is the process of adding transaction records to the public account of past transactions b […]
0
alpha miner psu-1820 s9 t9 d3 antminer ebit 220-240 volt Bitcoin crypto | Blockmine3rz
blockmine3rz.com – Today
[…] | Add to watch list BUY NOW ! VIEW MORE ASIC MINERS CHECK RANKINGS KNOWLEDGE BASE What is Bitcoin mining? Bitcoin Mining is the process of adding transaction records to the public account of past transactions b […]
0
Antminer L3+ L3++ Blissz Firmware v1.02 NO DEV FEE | Blockmine3rz
blockmine3rz.com – Today
[…] | Add to watch list BUY NOW ! VIEW MORE ASIC MINERS CHECK RANKINGS KNOWLEDGE BASE What is Bitcoin mining? Bitcoin Mining is the process of adding transaction records to the public account of past transactions b […]
0
Bitmain Antminer L3+ 504+MH/s With Bitmain Power Supply | Blockmine3rz
blockmine3rz.com – Today
[…] | Add to watch list BUY NOW ! VIEW MORE ASIC MINERS CHECK RANKINGS KNOWLEDGE BASE What is Bitcoin mining? Bitcoin Mining is the process of adding transaction records to the public account of past transactions b […]
0
Lightly used BITMAIN Antminer T9+ 10.5TH/s ASIC Bitcoin BTC Miner w/ PSU | Blockmine3rz
blockmine3rz.com – Today
[…] | Add to watch list BUY NOW ! VIEW MORE ASIC MINERS CHECK RANKINGS KNOWLEDGE BASE What is Bitcoin mining? Bitcoin Mining is the process of adding transaction records to the public account of past transactions b […]
N/A
Bitmain antminer l3 miner | Blockmine3rz
blockmine3rz.com – Today
[…] | Add to watch list BUY NOW ! VIEW MORE ASIC MINERS CHECK RANKINGS KNOWLEDGE BASE What is Bitcoin mining? Bitcoin Mining is the process of adding transaction records to the public account of past transactions b […]
0
Antminer S9 rental 24 hours 13.5Th/s mining contract. BTC/LTC/DOGE +more In US | Blockmine3rz
blockmine3rz.com – Today
[…] | Add to watch list BUY NOW ! VIEW MORE ASIC MINERS CHECK RANKINGS KNOWLEDGE BASE What is Bitcoin mining? Bitcoin Mining is the process of adding transaction records to the public account of past transactions b […]
0
Bitmain Antminer L3+ 504MH/s Litecoin Miner | APW3++ PSU Power Supply Included!! | Blockmine3rz
blockmine3rz.com – Today
[…] | Add to watch list BUY NOW ! VIEW MORE ASIC MINERS CHECK RANKINGS KNOWLEDGE BASE What is Bitcoin mining? Bitcoin Mining is the process of adding transaction records to the public account of past transactions b […]
0
Coin Mining Farm
coin-mining-farm.com – Today
START BITCOIN MINING Bitcoin Miners Will Get Reward Of Processing Transactions Start Mining What Is Bitcoin Mining? Earn Through […]
190
Antminer S9I | Blockmine3rz
blockmine3rz.com – Today
[…] | Add to watch list BUY NOW ! VIEW MORE ASIC MINERS CHECK RANKINGS KNOWLEDGE BASE What is Bitcoin mining? Bitcoin Mining is the process of adding transaction records to the public account of past transactions b […]
0
AntminerS9i 14.0 with APW3++ PSU Used Tested | Blockmine3rz
blockmine3rz.com – Today
[…] | Add to watch list BUY NOW ! VIEW MORE ASIC MINERS CHECK RANKINGS KNOWLEDGE BASE What is Bitcoin mining? Bitcoin Mining is the process of adding transaction records to the public account of past transactions b […]
0
AntminerS9i 14.0 with APW3++ PSU Used Tested | Blockmine3rz
blockmine3rz.com – Today
[…] | Add to watch list BUY NOW ! VIEW MORE ASIC MINERS CHECK RANKINGS KNOWLEDGE BASE What is Bitcoin mining? Bitcoin Mining is the process of adding transaction records to the public account of past transactions b […]
0
AntminerS9i 14.0 with APW3++ PSU Used Tested | Blockmine3rz
blockmine3rz.com – Today
[…] | Add to watch list BUY NOW ! VIEW MORE ASIC MINERS CHECK RANKINGS KNOWLEDGE BASE What is Bitcoin mining? Bitcoin Mining is the process of adding transaction records to the public account of past transactions b […]
0
bitmain antminer s9 bitcoin miner with PSU 13.5 TH/s | Blockmine3rz
blockmine3rz.com – Today
[…] | Add to watch list BUY NOW ! VIEW MORE ASIC MINERS CHECK RANKINGS KNOWLEDGE BASE What is Bitcoin mining? Bitcoin Mining is the process of adding transaction records to the public account of past transactions b […]
0
Antminer S9 13.5TH/s w Bitmain Power Supply TESTED AND HASHING AT FULL CAPACITY! | Blockmine3rz
blockmine3rz.com – Today
[…] | Add to watch list BUY NOW ! VIEW MORE ASIC MINERS CHECK RANKINGS KNOWLEDGE BASE What is Bitcoin mining? Bitcoin Mining is the process of adding transaction records to the public account of past transactions b […]
0
Bitmain Antminer L3+ 504MH/s with Power Supply | Blockmine3rz
blockmine3rz.com – Today
[…] | Add to watch list BUY NOW ! VIEW MORE ASIC MINERS CHECK RANKINGS KNOWLEDGE BASE What is Bitcoin mining? Bitcoin Mining is the process of adding transaction records to the public account of past transactions b […]
0
ANTMINER A3 SIA-COIN MINER 850+ GH s, PSU INCLUDED *ON HAND* *SAME-HOUR*Woow | Blockmine3rz
blockmine3rz.com – Today
[…] | Add to watch list BUY NOW ! VIEW MORE ASIC MINERS CHECK RANKINGS KNOWLEDGE BASE What is Bitcoin mining? Bitcoin Mining is the process of adding transaction records to the public account of past transactions b […]
0
RamenSwap Project Insight: A Community-Driven AMM and DeFi Aggregator
[…] It became controlled by a few making it difficult for many people to participate in mining Bitcoin […]
0
Bitmain Antminer L3+ 504+MH/s with APW3++ Power Supply | Blockmine3rz
blockmine3rz.com – Today
[…] | Add to watch list BUY NOW ! VIEW MORE ASIC MINERS CHECK RANKINGS KNOWLEDGE BASE What is Bitcoin mining? Bitcoin Mining is the process of adding transaction records to the public account of past transactions b […]
0
100 th/s 12 hour antminer mining contract .01 bitcoin atleast | Blockmine3rz
blockmine3rz.com – Today
[…] | Add to watch list BUY NOW ! VIEW MORE ASIC MINERS CHECK RANKINGS KNOWLEDGE BASE What is Bitcoin mining? Bitcoin Mining is the process of adding transaction records to the public account of past transactions b […]
0
Antminer S9i 14TH/s w Bitmain Power Supply TESTED AND HASHING AT FULL CAPACITY! | Blockmine3rz
blockmine3rz.com – Today
[…] | Add to watch list BUY NOW ! VIEW MORE ASIC MINERS CHECK RANKINGS KNOWLEDGE BASE What is Bitcoin mining? Bitcoin Mining is the process of adding transaction records to the public account of past transactions b […]
N/A
Antminer D3 Crypto Miner X11 Dash Cannabis | Blockmine3rz
blockmine3rz.com – Today
[…] | Add to watch list BUY NOW ! VIEW MORE ASIC MINERS CHECK RANKINGS KNOWLEDGE BASE What is Bitcoin mining? Bitcoin Mining is the process of adding transaction records to the public account of past transactions b […]
0
Antminer S9 14T With Psu And Cable. Ready To Use . Like Brand New | Blockmine3rz
blockmine3rz.com – Today
[…] | Add to watch list BUY NOW ! VIEW MORE ASIC MINERS CHECK RANKINGS KNOWLEDGE BASE What is Bitcoin mining? Bitcoin Mining is the process of adding transaction records to the public account of past transactions b […]
%d bloggers like this: