Peter Brandt, a veteran trader of the financial markets, offered his thoughts on the power consumption of BTC. Reducing Bitcoin’s energy consumption will render the cryptocurrency inefficient.
MicroStrategy CEO Michael Silver tweeted on July 19 about Bitcoin. “Bitcoin is a digital commodity because this cryptocurrency has no issuer and is powered by energy,” Michael said in this tweet. In response to this tweet, Peter Brandt wrote: “The largest cryptocurrency in the market would be inefficient without high energy consumption.”
Read more: The future and prediction of Bitcoin price in 2022
Bitcoin energy consumption reduction
According to Peter Brandt, the performance of the Bitcoin network will be disrupted without high energy consumption. Brandt believes that considering Bitcoin as a low-use digital currency is something of a big myth.
In his next tweet, the famous trader indicated that he currently owns Bitcoin and supports the bullish scenario of the market’s largest cryptocurrency. According to U.Today, prior to the beginning of the bear market cycle, it was predicted that Bitcoin will most likely not reach its all-time high price until early 2024.
Bitcoin has always faced severe criticism from environmental activists due to its high energy consumption. Based on data from the Cambridge Bitcoin Consumption Index, Bitcoin’s annual energy consumption is estimated at 93 terawatt hours. According to this data, Bitcoin’s energy consumption is equivalent to the entire country of South Africa. Bitcoin energy consumption is currently higher than Finland and lower than Argentina and Norway.
The amount of profit of mining cryptocurrencies decreases with the fall in the price of Bitcoin. In this situation, miners who are less productive will stop being online. This will reduce the energy consumption and hash rate of Bitcoin. According to reports, Bitcoin’s energy consumption has dropped by 25% in the past month. The market’s largest cryptocurrency has fallen to around $17,500 since mid-June.
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Source: u.today