Hidden Bitcoin RISK? The Coming Energy CRUNCH!!
Hey Guys!
Happy Sunday and I hope you are having an amazing weekend!
It's getting colder here in the UK which naturally means it’s time to start hunkering down for winter. But, that had me thinking...
All this talk about the impending energy crisis that we see has got me a little worried. Already, energy prices are sky high here in Europe and there are legitimate concerns we could face energy shortfalls in the dead of winter.
In fact, this energy crisis is a global one as people around the world are facing sky high energy bills. This is driven by several factors from lack of supply to mismanagement of grids.
But the main question here is: What does it have to do with crypto?
Well, if it’s a cryptocurrency that has to be mined through proof-of-work systems, it means that they are also competing for the same scarce energy resources. As we know, Bitcoin mining uses a lot of energy and many of the miners have been moving to places that could face constraints.
What happens if there is a legitimate scenario where local energy regulators must ration energy? Who is entitled to that? It also can't just be a matter of those willing to pay as this would mean energy prices become too expensive for the most vulnerable in society.
So, this is exactly what I explore in my latest video. I look at the current energy crisis that we seem to find ourselves in and how we got here. I then analyse the implications this has for PoW cryptocurrencies like Bitcoin.
Finally, I also look at some opportunities this does present for Bitcoin's narrative as a store of value - the silver lining in the winter clouds.
P.S. Enjoy the disclaimer 😉
⛓️ 🔗 Useful Links 🔗 ⛓️
51% Attack: https://www.investopedia.com/terms/1/...
IEA Stats: https://www.iea.org/articles/the-covi...
Gas Prices in Europe: https://www.bloomberg.com/news/articl...
Bitcoin Miners Moving: https://www.bloomberg.com/news/featur...
Global Energy Crisis: https://www.axios.com/energy-prices-r...
Data Centres Winter: https://www.zdnet.com/article/data-ce...
Energy Crisis in Europe: https://www.nytimes.com/2021/10/05/op...
Coal Crisis in China: https://www.reuters.com/business/ener...
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📜 Disclaimer 📜
The information contained herein is for informational purposes only. Nothing herein shall be construed to be financial legal or tax advice. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Trading Forex, cryptocurrencies and CFDs poses considerable risk of loss. The speaker does not guarantee any particular outcome.
