Depending on who you ask, Crypto are speculative bubble, a prespective , but still underdeveloped idea, or the definitive means to get rid of tirany of the governments and central banks.Looking at a very recent study by Dutch economist Alex de Vries they may turn out to be the factor that is to obliterate our entire progress until now in fighting climate change.
De Vries has long been warning that the constantly growing popularity of BTC and other crypto (already several thousand in number) is swallowing up an ever increasing amount of computing power and colossal amounts of electricity. As early as one year ago he calculated that BTC alone is swallowing up more electricity per year, than whole Bulgaria. Now his latest research published in the reputable Joule publication and verified by others scientists, gives even more woriyng results. If the rate of growth of BTC remains the same , up until the end of this year the digital currency will be consuming 0.5% of the world`s electricity production- i.e as much as the whole of the Netherlands. And as of the end of 2019 its consumption will already be 1.8% of the global production or more than the quantity produced by all solar power plants on the planet. This would practically wipe out the entire fragile progress in the field of renewable energy.
No one doubts, that the popularity of bitcoin is purely speculative – in fact this is precisely the thing that is attracting new investors. For the last year and half the crypto underwent a tenfold rise in its price, then it collapse with 75% and finally it doubled its value again.
Of course there are other reasons for crypto to be popular- outside the wish for getting rich easily and quickly. Many people see in them the hope for preserving our freedom with the emerging gradual removal of paper money around the world. BTC allows you to buy and sell without constantly being watched by the authorities.
But this does not rule out the problem with energy consumption. The growth of the Crypto demands ever more numerous and ever more powerful servers. A single BTC transaction at the moment consumes as much electricity as does a standard American house hold for entire month, De Vries emphasizes.
At the moment the energy consumption of BTC is growing by 20%… per month. If continues, the Crypto will be devouring the entire world`s energy production as early as in Jan 2021.
BTC`s admires are blaming De Vries for being too pessimistic. He maintains the opposite – his research does not include the illegal transactions, eaich are not at all few in number, so actually his deductions are one may say too optimistic . Our only hope , the Dutch scientist thinks is for the government to finally come their seances and to interfere until then.
Trader Velizar Mitov