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Analysts: Cryptocurrency mining will entail an energy crisis

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Cryptocurrency mining will entail an energy crisis

Specialist of the financial company Nomura Jordan Rochester is sure that the crypto-currency crisis will soon collapse on the world. In his opinion, bitcoin began to seriously affect other areas. First of all, we are talking about energy. The analyst argues that energy costs for the production of cryptocurrency are growing much faster than expected. This is especially true for China, where 71% of all “farms” for bitcoin are located.

Cryptocurrency mining will entail an energy crisis

 

“According to estimates made in March 2016, it was expected that by 2020, bitcoin mining will require as much electricity as the whole of Denmark consumes. Bitcoin reached this mark now – three years ahead of the expected date, “the analyst said.

The specialist believes that bitcoin will lead to economic and environmental costs as long as PoW (the concept when network security is guaranteed by the total computing power of its participants) is the most common form of obtaining cryptocurrency.

Bitcoin growth

 

“Bitcoin is too young to influence the global market. However, it already affects the regional markets of Asia. Japan accounts for half of the world’s sales of bitcoins, in the US – a quarter. If there is a crypto-currency crisis, then, most likely, in Asia, “- said Jordan Rochester.

It is worth noting that in 2017, the cryptocurrency mining has already affected the video card market, causing them to rise in price and deficit.

3 COMMENTS

  1. Ahhh! They should quickly find a better solution to this issue. Bro… How about the value? Has it raise up again?

  2. Am getting scared.
    Am having a feeling that this crypto currency stuff might crash.
    Investors have to be very cautious.
    Thanks for info though.

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