We are going through one of the craziest weeks of the cryptocurrency market. Bitcoin has plunged to almost 46k, and it still has a hard time breaking the 50k mark. You could be thinking, What happened to Bitcoin? Elon Musk happened. Elon Musk said that Tesla would halt accepting bitcoin as a payment for their vehicles because of bitcoin mining’s high electricity/coal usage. He further stated that cryptocurrencies are a good idea, but they shouldn’t harm the environment. Okay, Elon, now let’s take some statistics and learn more about bitcoin mining.
Bitcoin mining is the process of creating bitcoin and adding them to the circulating supply. It’s also a crucial part of the bitcoins’ maintenance and development of the public ledger.
Bitcoin mining is done with specific computers called ASCII. These computers are powerful, and they consume a lot of power. Bitcoin mining facilities are created by using tens of thousands ASCII computers. Some facilities take more than the power consumption of countries. You can find read more about it in this article by BBC.
Bitcoin Mining Power Consumption
Graph from www.statista.com
One bitcoin transaction consumes the power of 100,000 VISA transactions. But the whole banking system of the world is using about 7X of bitcoins power consumption. Even gold mining is still using more energy than bitcoin mining. POW(Proof of work) is a feature, not a bug.
Graph from www.visualcapitalist.com
An estimate b the University of Cambridge suggests that Bitcoin mining consumes more than 120 Terawatt hours(TWh) per year. This electricity consumption is higher than the countries like Sweden and Argentina. If we get bitcoin as a country, it is in the top 30 energy consumers.
Bitcoin and Renewable Energy
76% of bitcoin miners are using renewable energy. Because of bitcoin mining, renewable energy systems have a huge attraction, and Bitcoin urged companies to find and invest in many new renewable energy systems. This electricity usage is not happening because of the higher transactions but because of the mining. Bitcoin mining will end in 2140, and from then, bitcoin will use a small percentage of energy consumption compared to today.
As we can see many facilities are using Hydroelectric and it’s about 62%. Elon stated about 38% of coal. We all believe that it will go down soon as soon as the renewable energy industry matures more.
Bitcoin Price Manipulation
This is the interesting part of this article. You will learn actually what happened to bitcoin.
Elon Musk added the tweet about halting bitcoin payment at 6.06 PM of 12 May 2021. The Mystery is at 5.45 PM. More than 18000BTC was coming into exchanges. Why many wealthy people will put or leverage short bitcoin to get profits. At that time, about 10000BTC was withdrawn from exchanges and send into cold wallets for $49000. Many people lost money because of this, and the whole crypto market got hit by this. What do you think about this? Comment your feeling down below.
These are insider proofs and one has already became a reality. Next one is going to happen in the near future and price target is at $25K. If this plays out bitcoin will lose so many new investors and will go into bear market, because of the FUD.
China is again bringing their old FUD calling they are going to ban bitcoin. Even if they ban bitcoin, it will be a problem for China soon. Because if china ban crypto mining, miners will relocate to different parts of the world. BIT Mining Limited has already signed a binding investment term sheet with Dory Creek to build a mining farm in Texas. BIT Mining plans to invest $25.74 million in the 57-megawatt facility, which it will operate using 98% of renewable energy. This is bullish news for bitcoin because many investors think that bitcoin is a product of China to take power from the USA to China. So China banning bitcoin is good for bitcoin.
Can we trust that Elon didn’t know about this energy consumption until the 12th of May? Tesla also invested about 1.5 Billion into bitcoin. Why suddenly is he saying Bitcoin is not good for the environment? One of the world’s smartest people didn’t study bitcoin before investing about 1.5Billion? Or all of this is price manipulation? Comment down below. Share and educate more people about this incident.
Download Cryptocurrency Trading E-Book for Free
2021-ccaf-3rd-global-cryptoasset-benchmarking-study.pdf – 3RD GLOBAL CRYPTO ASSET BENCHMARKING STUDY