The Internet and its technologies have changed lives in countless ways, many of them saluting them. It has provided us with a ton of information, made shopping a breeze, and enabled us to stream movies or shows at any hour.
Companies can communicate instantly with suppliers, subsidiaries and customers anywhere in the world. Information technology can help companies work more efficiently.
But there are plenty of downsides too, from the excesses of social media to the risks of getting hacked. The negative headlines this week about Facebook (NSDQ: FB) and how it helps spread hate speech underscore the dark side of the internet.
Here we focus on one particular drawback: the way in which modern technologies have vastly improved the government’s ability to gather tons of information about the activities, whereabouts and contacts of individuals.
Even if you accept these intrusions as necessary for national security, it still leaves many with a queasy feeling that their privacy has been intruded.
The appeal of crypto
That brings us to cryptocurrencies.
The appeal of Crypto reflects the urge to protect the freedoms and privacy that are compromised by our highly interconnected society. Cryptocurrencies have no government or central bank involvement. Rather, they enable users to carry out transactions on a decentralized peer-to-peer basis via the blockchain. The blockchain is a technologically advanced form of distributed digital recording that tracks every transaction.
While cryptocurrencies are digital, they differ from government-issued digital currencies, which are digital versions of today’s paper-based national currencies.
Governments that issue digital currenciesrencies will be able to follow virtually anyone’s path Money transactions, obtaining enormous informationabout what each is up to. The age of digital currencies is getting closer and closer.
In this area, China has led the way and the country plans to roll outits digital currency during the upcoming winr Olympia. When digital currencies emerge, they are is likely to be the already growing Use of cryptocurrencies for the benefit of investors who got on.
But not all cryptocurrencies are created equal. Bitcoin is the best known, but it has major drawbacks and I think it should be banned (or at least avoided).
Greedy energy consumer
The big blow to Bitcoin is how much electricity it uses. The currency is created using computers to solve very complex problems. Let this run Computers need electricity.
With Bitcoin that is Problems are far more difficult than with some other cryptocurrencies, need a lot more electricity. Most estimates today are that Bitcoin mining takes about 10 times more energy than Ethereum, for example.
Read this story: Bitcoin: Wealth Creator or Destroyer?
The world has to come where it can be relied ontired of renewable energy. That goal is no-negood-natured. Whether you believe in climate change or not, the need for transition on renewable energies is still indispensable due to rising energy costsScarcity of sources.
When we run out of raw materials, it is The lights will literally go out. All over the world History, millions of species have become extinct. Bitcoin is a threat that increases the likelihood of huPeople will join this list.
To make the essential transition to a sustainWorld, is the first step, so much of ours Activities as possible on electricity. A plentiful supply Electricity, which is a primary clean energy carR.that is, we will again produce copious amounts of the second clean energy carrier, hydrogen. this is a great job that is a remarkable global one Effort.
Bitcoin is a threat to renewable energy
Performing some additional bitcoin math helps to show why this grandfather of all cryptocurrencies is so disastrous Phenomenon. If you compare the power consumption of Bitcoin with the total value Power consumption, you can think of something else sounds like a pretty small number, about half of 1%. Still, that’s more electricity than Norway used and consumed twice as much as Switzerland.
And it’s just the beginning, because it’s a huge understatement the damage Bitcoin does. About 99% of Bitcoin The miners’ costs are based on what they pay for electricityitat. According to the International Energy Agency The cost of solar energy per watt is the cheapest electricitySource in the story. Solar is also the most scalable Energy source. In total, seeolar is the most important in the world Energy source: cheap, scalable and clean.
Bitcoin’s current power consumption is equivalent around 20% of global solar power consumption. Bitcoin miners are trying to use so much solar energyEnergy as you can as it is cheap and carbon free.
Read this story: Brother, Can You Save A Bitcoin?
It’s not an exaggeration to say that conThe continued use of Bitcoin is a threat to humanity. If we have a prayer for exponentially increasing renewalWe need energy as absolutely necessary Be absolutely committed to all of the cheap deals. to dedicateWe have Ergy for this purpose.
Use more expensesMany energies used to build solar will not work because it would end up making solar energy more expensive and less appealing. For every product made on it Planets, the cheaper the energy costs, the cheaper the product, which leads to a higher demand.
Why China Banned Bitcoin Mining
Solar prices have started rise. Why? Because of the lack of cheap electricity in China this country has prevented constructionthe factories to produce the polysilicon needed to meet the increasing solar demand.
Pure Polysilicon is used for both solar panels as well integrated circuits. Without high-purity polysilicon, not only solar is hammered, but also semiConductors, the heart of all of our information technologytechnologies.
It doesn’t take a lot of imagination to believe it this explains the excessive power consumption of Bitcoin why china has banned Bitcoin mining. China has clearly taken this step is in its own interest, but it benefits everyone else too. That is also in ChinaInterests, because China needs a viable world in which Life.
It’s another example of why it is a lot of sense for the coming together of countries and cooperate on critical questions that may arise will shapeeryones future. Cheap energy is the most valuable Resource that the world has. Let’s hope the world has it enough sense to realize this and avoid Bitcoin and use other cryptocurrencies.
In the meantime, as an investor, you should take the advice of my colleague Dr. Consider Stephen Leeb. He is an expert on China, raw materials and the energy markets.
At The Complete Investor, I work closely with Dr. Leeb together. As the publication’s lead investment strategist, Dr. Leeb just spotted a $ 128 trillion megatrend that will make young investors rich. Click here for details.