Crypto Power Crisis?
OPINION: The EU may ban Cryptocurrency Miners AND Why you should buy ETHEREUM.
Blockchain Downunder - THE POWER OF CRYPTOCURRENCY - worldwide we are facing an energy crisis. The EU may have to act in the interests of greater energy need. And what consumes power like crazy? Cryptocurrency mining technology.
"According to the commission, the transition from PoW to a Proof-of-Stake (PoS) system by the Ethereum Network is more or less the nature of transformations it hopes to see in the near future. With the proposals for the crypto miner rating already underway, its implementation, if approved will be slated for 2025."
SOURCE: Blockchain News EUROPEAN COMMISSION: Press Release
It does so, because the intense power needed to verify transactions on the blockchain generates massive heat, like you’ve never seen.
Ethereum saw the writing on the wall early on, making the transition from GPU (Graphics Processor Unit) Proof of Work (PoW) to the Proof of Stake (PoS) distributed consensus mechanism on Sep. 15, 2022.
I have ALWAYS predicted that Eth was undervalued, and never more so than when it comes to engineering protocols that use less power to do more in a world that is at energy war. It’s the energy cost of cooling crypto miners that could cause cryptocurrency to fail.
Seem unreal to you?
Downunder in Perth, precursory media reports indicate that we may not have enough coal to power air conditioning units for the next summer. Ironic, because we have been exporting our coal like crazy.
And why are we using coal with all this untapped sunshine?
Scomo had the chance to prepare Australia, but he didn’t.
Mailbox drop pamphlets caution Western Australian residents to stock up on water and to prepare back up power sources.
No one’s talking about it?
Not quite true.
My neighbour and I spoke over the fence yesterday about “being there for each other.”
We’ve had several power cuts already.
Interrupts to power supply is how I’ve come to know my neighbours so well.
In the same way that people who visited the Las Vegas of ancient civilisations paid no heed to Pompeii, we have “industry experts” enjoying the wages of venture capital speculation, and no one is going to jeopardise their short-term income.
It’s this foolish blind optimism that industry insiders and all their organisations have that ignore all the downsides.
They remind me of the tobacco industry, at least in respect of the fact that cryptocurrency is fundamentally unstable and unsafe, yet promotion everywhere ignores all the clearly apparent downsides.
No disclaimers, no caveats.
And fortunes are on the line.
Disclaimer: this is not financial advice, and I am not a registered financial advisor. Rather, I am a financial technology expert commenting on the functional application of cryptographic based technology, its attributes, and the impacts of that technology on finance.
GLYN MACLEAN