Bitcoin Is Facing Critical Weeks

The stock market’s fluctuations over the next few weeks will be key in establishing whether we are going for a short-term or long-term recession. A recession of this magnitude may last until 2024 and would undoubtedly negatively influence the price of Bitcoin (BTC). Regarding the new Pound sterling problem, Rastani believes that the main cause is strengthening the US dollar. It pressures most other fiat currencies, including the yen and the euro. However, the US dollar is nearing its peak.

According to US experts, the world’s most controversial cryptocurrency, Bitcoin, has a bigger climatic impact than beef production and causes nearly as much environmental damage as crude oil. Cryptocurrency mining takes a lot of energy since it requires highly sophisticated computers. Most of the electricity it uses comes from burning fossil fuels, which greatly impacts the climate. Between 2016 and 2021, the economic damage caused by Bitcoin mining exceeded its market value on 6.4 percent of the days it traded.

Furthermore, Bitcoin’s climate damage averaged 35 percent of its market value over the five-year study period. That is, 35 cents of one US dollar of Bitcoin would be assessed as climate harm caused by the cryptocurrency. Each Bitcoin created in 2021 caused approximately US $11,315 in climate damages, totaling approximately US $3.7B for that year alone. To put this in context, researchers compared digital currency mining to other high-energy pursuits.

As a result, the study discovered that Bitcoin’s ensuing climate harm was slightly less than that of natural gas, at 46 cents per dollar. At the same time, crude oil’s climate impact is 41 cents per dollar. Furthermore, the cost of Bitcoin is greater than beef production (33 cents) and significantly greater than gold mining.