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According to the head of the South Korean platform for crypto data analytics CryptoQuant, Ki Young Joo, the mining of the leading digital currency bitcoin is facing an energy crisis. The solution of this problem, as the expert shared, will be an advantage for changing market sentiment. At the same time, it will redistribute priorities in the trading field towards mining concerns cooperating with corporations focused on environmentally friendly ways of generating energy.
According to the data provided by the researcher, Bitcoin mining using the proof-of-work (PoW) algorithm consists of 62% consumption of hydropower resources. Only 17% of the coins produced were created with the help of solar energy, and thanks to the power from wind generators – another 15%.
Ki Yang Joo recalled in a statement:
“The technology of energy production with the help of hydro industry reserves carries the maximum damage to the environment, while bitcoin mining requires more and more capacity every day. Since November 2021, the absolute power of mining equipment has increased by 75%”
The head of another analytical crypto agency Coin Metrics, Nick Carter, also expressed concern about the energy difficulties in the production of virtual currencies. In his opinion, annual global mining activities spent 150 Twh (terawatts / hour) of power, which is more energy consumption in Sweden or Egypt for 2021.
More and more experts are inclined to believe that a further increase in the value of Bitcoin will occur only if replaceable sources of electricity generation are used.
Earlier, the editors of the Crypto.ru reported that experts expected an increase in power consumption in the production of bitcoins and shared the forecast values.
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