Note: “This analysis is an adaptation from the work of Mati Greenspan, Senior Market Analyst at eToro
Key Highlights
- Bitcoin Fundamentals getting stronger
- The Hashrate of Bitcoin network reaches a new equilibrium
- Robert Sharratt article on Bitcoin Mining has some flaws
Bitcoin mining’s environmental impact- Demystifying the Myths
Well, everyone is aware that the fundamentals of the Bitcoin blockchain are getting strong day by day, there a few new parameters that have surfaced which reiterate the same. The number of transactions being processed in bitcoin has been growing increasingly during the bear market and is now reaching levels that have previously been seen only during the 2017 bull run.
To add to this fact, the hashrate (total computing power of miners) of the Bitcoin network reaching a new equilibrium and evening out over the last few weeks. Another piece of fact that is working in favor of bitcoin comes from the Canaccord Genuity Group states that Bitcoin is becoming more decentralized as it gets older.
While the fundamentals continue to grow, a recent blog by Robert Sharratt has been the point of discussion for many. The blog titled “The report of bitcoin environmental damage is garbage” has put forward plenty of counterarguments against the whole question of bitcoin’s environmental impact. To provide a brief, the article states the following
- The author Robert Sharratt is probably one of the most qualified people on the planet to write on this subject as is confirmed by his LinkedIn page.
- Most bitcoin mining is done in Sichuan province where they have an overabundance of clean energy that would otherwise go to waste.
- If popular claims made against bitcoin are correct, the network will consume the entire global energy output (all electricity on earth) by Q2 2023.
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
