As Bitcoin hovers over $4000, crypto enthusiasts across the world staring at the new bull market. While BTC starting to pick the long-awaited figure, one cannot forget the energy it consumes during mining– however, the case of Bitcoin transaction in terms of electricity is quite different. As such Venezuelan claims that the recent massive power outages didn’t affect the BTC network.
Bitcoin Better Than Centralized Banks
Frances Coppola, financial author, and famously known Bitcoin critics took to Twitter on March 16 and claimed that ‘Bitcoin needs electricity’. She quoted a tweet of Professor Steve Hanke who discussed the use of Bitcoin in Venezuela that had suddenly dropped 40% due to blackout according to some reports. Quoting the tweet of Steve Hanke, Coppola said;
Since the “blackout” began in #Venezuela, the use of #bitcoin has dropped 40%, heightening the country’s money problems: a lot of inflation, but no money. #Socialism has returned VNZ to the days of barter. https://t.co/ObbeneVHzg
— Prof. Steve Hanke (@steve_hanke) March 16, 2019
But behind the scene, the claim is proved wrong. On March 18, 2019, a redditor from Venezuela who seems to be a bitcoin enthusiast – published a post taking Coppola’s statement from Twitter. Redditor strongly claimed that ‘My whole country didn’t have electricity, all banks were down. Bitcoin was still up.’ The post was quickly explaining the blackout does affect Banks, Debit and Credit cards but doesn’t affect Bitcoin network.
Coppola has long been critics when it comes to Bitcoin and often Anthony Pompliano, founder of Morgan Creek used to respond her, explaining how her sentiment seems wrong in his view. As such, this time too, he took Twitter and commented on Coppola’s claim. He said, “Bitcoin is simply superior money’,
The power in Venezuela was down.
People had no access to their $$.
The ATMs weren’t working.
The banks were down.
But Bitcoin was running.
It is always running.
Bitcoin is simply superior money.https://t.co/TLKn8ccsQi
— Pomp 🌪 (@APompliano) March 19, 2019
Although electricity was down in Venezuela, the scene of Bitcoin interest among Venezuelans is opposite – while responding to a question, Reddit user said that Cryptocurrency interest in Venezuela is growing every day and more people are interested. Similar to the increasing interest, Bitcoin’s value is also taking a leap with almost 0.30 percent over the past 24 hours. At present, the value of Bitcoin sits at $4028 against US dollar.
Since Venezuela often appeared with the poor economy and infrastructure issues, Dash Text Wallet is reportedly addressing a part of such issues. As coingape reported, an SMS wallet from Dash helped 50 students via its new charitable donation model. To note, the model is internet free, means that anyone/doner can send a donation to the specific Bitcoin address without internet and beneficiary receive the same without having to connect the device with the internet.
As such, it marks Venezuelans to access cryptocurrency such as Dash without internet. Moroever, the recent claim of a Redditor clearly indicate bitcoin doesn’t need electricity for the transaction. However, the case is different when it comes to mining Bitcoin.
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Tabassum is a full-time content writer at Coingape. Her passion lies in writing and delivering apt information to users. Currently, she does not hold any form of cryptocurrencies. Follow her on Twitter at @Tabassumnaiz and reach out to her at Tabassum[at]coingape.com