The following article is the rework of the thoughts put forward by Mati Greenspan, the Senior Market Analyst at eToro.
The hoax about the around the vast amounts of electricity and the pollution created to run Bitcoin [BTC] mining will soon be put to rest once and for all. A massive kudos to the University of Cambridge for bringing a vast amount of clarity to a data set that has been the topic of hot debate over the last few years.
All in all, according to the CBECI FAQ page, there is little evidence to suggest that bitcoin is contributing to climate change and at the very worst case scenario only accounts for 0.17% of the Earth’s carbon emissions. The annualized consumption of electricity for Bitcoin mining is estimated at 53.01 TWh.
Bitcoin’s annual electricity consumption while does rank with countries like Switzerland and Turkey it is considerably less. Moreover, the country-wise comparison suggests that Bitcoin’s electricity consumption is way lower than in some countries.
Correlation Between Bitcoin and Gold
Until now, Bitcoin has moved independently of any other asset class. This is primarily because of its ambiguous nature. However, we can see the price of gold (yellow) against bitcoin (blue) have been moving very similarly since the beginning of May.
So, what happened in May that caused both assets to rise?
On Bitcoin’s Bounce
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Mati Greenspan is the Senior Market Analyst at eToro, a global social trading and investment platform. Mati is a licensed portfolio manager in the European Union and his main focus is on macroeconomic analysis, portfolio diversification and cryptocurrencies. Follow him on Twitter at @matigreenspan